 "Cement industry, cement")
ACC, a subsidiary of Ambuja Cement, today reported net income for the January-March quarter that missed the average analyst estimates. The company's net income declined to Rs 237 crore -- a fall of 39.5 per cent on a year-on-year basis.
The revenue was up 8.1 per cent to Rs 4,790 crore year-on year basis. Total costs was Rs 4,510 crore, up 13.9 per cent due to high energy costs.
ACC, now a part of the Adani Group, has changed its financial year to April-March from January-December followed previously. The company was taken over by the Adani group in May last year.
In a statement, the company said it's net revenue on a sequential basis was up by 6 per cent at Rs. 4,791 crore and EBITDA rose by 40 per cent at Rs. 588 crore.
The EBITDA margin expanded from 9.3 per cent to 12.3 per cent on cost optimization and leveraging synergies from adjacency businesses of Adani Group.
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The company said while fuel cost is on a declining curve, EBITDA is lower on a year-on-year basis due to higher fuel cost compared to last year. Fuel cost is expected to further reduce in the coming months through synergies with the group as business initiatives are expected to further bring down the operating cost, reduce clinker factor, reduce logistics cost, improve sale of blended cement and expand EBITDA margin.
Ajay Kapur, Whole Time Director & CEO, ACC said, the company's transformation journey fuelled by sizeable operational efficiencies, improved synergies and business excellence has led to substantial improvement in our financial performance and overall business indicators. "We have a detailed blueprint on each of the cost factors and initiatives to reduce & improve. This along with capex program will position the Company back into growth momentum synonymous with its legacy," he said.
ACC on Hindenburg: Independent review found it in compliance with all laws
In its notes to the accounts, ACC said an independent law firm had reviewed all the transactions referred to in short-seller Hindenburg's report that came out in January this year. The independent law firm’s report has confirmed the company's compliance with all applicable laws and regulations, ACC said in a notice to the stock exchanges.
Further, in the context of the short-seller's report, a petition has been filed in the Supreme Court, and the Securities and Exchange Board of India is examining its compliance to laws and regulations by conducting inquiries into the group's listed companies. The company said since the matter is sub-judice, the financial statements do not carry any adjustments.
The Adani group companies had come under a sharp bear attack after the Hindenburg report. The group has since prepaid debt by selling stakes in its various companies and slowed down on expansion and new projects.
The market capitalisation of the group companies has recovered by 47 per cent since its lowest point at the end of February.
