ACC Ltd Q3FY22 dips to net loss of Rs87 crore as higher power, fuel and freight costs pinch hard

19 Oct 2022 , 07:54 AM

ACC Ltd reported 6.36% growth in total sales revenues for the September 2022 quarter on consolidated basis at Rs3,987cr. Sequential revenues were down -10.77%.

For the September 2022 quarter, ACC saw 5.6% growth in revenues from cement at Rs3,691 crore while the revenues from ready mix concrete were up 15.7% at Rs353 crore.

The top line growth maintained the momentum with volumes picking up in the quarter by over 6% even as pricing remained static at best. The challenge was actually in the bottom line.

Consolidated net loss for September 2022 quarter stood at Rs87.35cr in the quarter compared to a net profit of Rs450.2cr in the year ago quarter.

This was largely triggered by a sharp spike in the cost of power and fuel and also a spike in the cost of freight and transport.

For instance, the power and fuel costs were up 67% on a yoy basis while the freight and transportation cost was up 14.2% on yoy basis. ACC reported a huge operating loss on cement and marginal profits on ready mix concrete.

Net margins for Q3FY22 were negative at -2.19% compared to 12.01% in the year ago period and 5.09% in the sequentially previous quarter.

Financial highlights for Sep-22 compared yoy and sequentially

	ACC Ltd
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 3,987.34	₹ 3,749.00	6.36%	₹ 4,468.42	-10.77%
Operating Profit (Rs cr)	₹ -140.49	₹ 562.48	-124.98%	₹ 268.06	-152.41%
Net Profit (Rs cr)	₹ -87.35	₹ 450.19	-119.40%	₹ 227.32	-138.43%
Diluted EPS (Rs)	₹ -4.65	₹ 13.91		₹ 12.07
OPM	-3.52%	15.00%		6.00%
Net Margins	-2.19%	12.01%		5.09%