ACC Q2 Net Plunges 92% to 93 Crore

What happened

ACC, owned by Adani Group, reported a 92% year-on-year fall in net profit to 93 crore for the September quarter, down from 1,119 crore a year earlier, which included a 671 crore tax write-back.

Confirmed

Global impact / market context

Weaker profit cuts the cash ACC keeps from each sale, limiting funds for debt payments, dividends and plant spending. Higher costs alongside falling revenue squeeze profit per sale, which can hurt the stock and investor returns.

Analyst inference

Cement demand is tied to construction, so falling sales volumes signal softer building activity. ACC shares hit a 52-week low of 1,115 rupees before closing 1.6% lower, showing investors already pricing in weaker earnings.

Analyst inference

What to watch

1. Watch whether ACC's cement sales volumes recover from 9.7 million tonnes, since the Master Supply Agreement with parent Ambuja Cements shifted volumes and reduced sales booked by ACC. Confirmed
2. Watch ACC's total expenses, which rose over 2% to 5,602 crore despite lower revenue, because continued cost increases would further reduce profit per sale and cash available. Proposed
3. Watch Ebitda, which more than halved to 401 crore from 846 crore, and operating margin, which fell to 7%, as these show how much profit ACC earns from core operations before interest and taxes. Analyst inference

Evidence

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