ACC Q2 Net Plunges 92% on Low Sales, Cost Rise

What happened

ACC's profit fell 92% to 93 crore in the July-September quarter from 1,119 crore a year earlier, which included a 671 crore tax write-back. Sales fell to 9.7 million tonnes, revenue dropped over 5% to 5,689 crore, and expenses rose, sending shares to a 52-week low.

Confirmed

Global impact / market context

Lower cement volumes and higher costs squeezed profit per sale, which fell to 7% from 14.1%. That leaves less cash available from each tonne sold, and the prior year's tax write-back, a one-time accounting benefit, makes the underlying decline in earning power look starker.

Analyst inference

Shares closed at 1,147.50, down 1.6%, after hitting a 52-week low, showing investors quickly repriced the stock on weak quarterly earnings. The Master Supply Agreement with parent Ambuja Cements shifts volumes internally, which means reported sales and revenue are not strictly comparable with earlier periods.

Analyst inference

What to watch

1. ACC reported earnings during market hours on Tuesday, and its shares hit a 52-week low of 1,115 on the BSE before closing at 1,147.50, down 1.6% from the previous close. Confirmed
2. Management said the reported numbers are not strictly comparable because of the Master Supply Agreement with Ambuja Cements, so investors should watch whether underlying business momentum improves once these internal supply shifts settle. Proposed
3. Watch cement sales volumes, total expenses and operating margin in coming quarters, because a return to volume growth alongside stable costs would be needed to rebuild profit and restore earnings toward prior levels. Analyst inference

Evidence

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