ACC Q2 results: Net profit after tax (PAT) drops 39% to ₹2.34 billion | Mint

Indian cement maker ACC reported a smaller-than-expected decline in second-quarter profit on Thursday, as steady volume growth helped mitigate a decline in cement prices and rising costs.

The company’s profit after tax dropped 39% to ₹2.34 billion (about $28 million) in the three months ended Sept. 30, but was above analysts’ average estimate of ₹2.18 billion, per data compiled by LSEG.

Revenue from operations grew 4% to ₹46.08 billion, while its expenses rose about 8% to ₹44.44 billion owing to a 17% surge in input costs.

Key Context

Cement prices hit five-year low of ₹336 per bag in the September quarter, ACCording to Ambit Capital, due to an industry-wide ramp-up in production to meet medium-term demand expectations, leading to greater supply.

Earlier this week, ACC’s larger rival UltraTech Cement reported a steeper-than-expected decline in profit due to low cement prices.

ACC reported a 15% sales growth, compared to a 9% growth in the preceding quarter.

The company also said it expects demand improvement across the cement industry in the second half of fiscal year 2025, likely due to post-monsoon pickup in construction and housing activity.