ACC Ltd Q3 Results FY2023, PAT at Rs. 113.19 crores
On 31st January 2023, ACC Ltd announced its results for the third quarter of FY2023.
- The company posted net Revenue up 14% at Rs. 4,536.97 Crores, volume up by 12% at 7.7 MT Quarter on Quarter (QoQ)
- Cost reduction by Rs. 368 PMT from Rs. 5,738 PMT toRs. 5,370 PMT QoQ
- EBITDA jumped to Rs. 542 PMT QoQ led by cost optimization
- The company reported PAT at Rs. 113.19 Crores
- Cash and Cash Equivalents at the end of the quarter is Rs. 2,835 Crores
- Volume increased by 12% QoQ at 7.7 MT, supported by an increase in blended cement (clinker factor reduced from 57.2% to 56.1%), better route planning and higher operational synergies with a parent, M/s Ambuja Cements Limited. Market leadership maintained across key markets
- Kiln fuel cost reduced by 17.7% from Rs 3.17 per '000 kCal toRs 2.61 per '000 kCal with change in coal basket, group synergies on coal procurement, higher Alternate Fuel and Raw Materials (AFR) factor
- Warehouse infrastructure optimized, direct sales improved (40% to 44%), lead distance reduced (307 KM to 292 KM) & higher dispatches through rail helped to reduce logistics cost from Rs. 2.96 ptpk toRs. 2.86 ptpk
- Manpower cost reduced QoQ from Rs. 305 PMT to Rs. 262 PMT
Commenting on the results, Mr. Ajay Kapur, Whole Time Director & CEO, ACC Limited said: "Higher demand for cement due to a pickup in construction activities and our relentless focus on operational excellence, reduction in fuel and logistics costs by leveraging on synergies with Group's adjacencies, improvement & expansion of our dealer network to serve nearest markets, helped us to clock a robust sequential growth in our top line and margins. With the rise in construction activities across our markets, we see the continuation of the elevated demand and strong volumes in the coming quarters as well.
During the quarter, AFR Consumption volume increased by 33% due to various debottlenecking initiatives and strong focus on cost optimization. We successfully commissioned WHRS at Kymore & Jamul, while Ametha Integrated Unit expansion will be completed by Q2 of FY24. Due to transport unions' unworkable position on the freight rate and distribution model, the Company decided to temporarily suspend operations at its Gaga! plant (Bilaspur) in Himachal Pradesh. The Company is holding constructive talks with all stakeholders, including the State government, to arrive at a mutually acceptable and sustainable solution."
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