ACC slumps post Q1

ACC reported a dismal Q1FY23 performance. The company posted a 60% (YoY) fall in consolidated net profit at Rs.227 crore and this was on a 15% increase in revenue of Rs.4468 crore.

The fall in net profit was on account of a rise in fuel costs and related inflationary impacts. 

EBITDA slipped from Rs.869 crore to Rs.426 crore and margins fell from 22.8% to 9.7%.

The company’s integrated unit at Ametha to be commissioned in Q4 2022. Land acquisition and other actions for the grinding unit project at Salai Banwa are progressing as per schedule.

The company’s outlook for the coming months - Government's concerted efforts to stimulate investment across several sectors will have a favorable impact on improving the overall economic environment in the country. Prediction of a normal monsoon will augur well for the rural economy. We maintain a positive outlook for demand in the coming months.

The market was in no mood for this outlook and the stock was dumped and downgraded by fund houses. The stock opened around 1.5% lower at Rs.2126, going down over 2% to hit an intraday low at Rs.2111. Its 52-week low is at Rs.1900.50.