This Adani Stock Is On The Up After Doubling Net Profit In Q1

Cement giant ACC reported a significant net profit increase of 105% YoY to ₹466.1 crore for Q1, ending June 30, 2023. This news boosted the company’s share value early on Friday.

ACC Q1 Performance: Compared to the ₹227 crore net profit in the same quarter of the previous year, ACC’s financial growth in the first quarter is notable.

ACC’s Q1 total revenue climbed by 16.4%, reaching ₹5,201.1 crore, compared to ₹4,468 crore in the same quarter last year. Operating profits, or EBITDA, soared by 81% to ₹770.9 crore. The company’s EBITDA margin also rose, from 9.5% to 14.8%.

There was a 23% YoY rise in volume to 9.4 million tonnes due to a blend cement increase and efficiency improvements. The cost of kiln fuel dropped by 15.5% from ₹2.52 to ₹2.13 per 000 kCal. This reduction is attributed to energy efficiency, better manpower productivity, and other operational improvements.

ACC CEO Ajay Kapur attributed the growth to robust demand for quality cement and operational optimisation efforts. He stated that the positive industry trend should continue into the next quarter.

Price Action: ACC Ltd. shares were trading 1.11% higher at ₹1971.4 shortly after markets opened for trading on Friday.

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