ACC Q4 results: Adani firm's net profit falls 40% to Rs 236 cr, declares Rs 9.25 dividend

Adani-owned ACC Ltd on Thursday reported 40% decline in consolidated net profit at Rs 236 crore for the quarter ended March 31, 2023 due to higher expenses. It reported consolidated net profit of Rs 396 crore in the year-ago period. 

The cement producer's consolidated revenue from operations rose 8% at Rs 4,791 crore in Q4FY23 as against Rs 4,427 crore in the year-ago period. 

On Thursday, ACC Ltd's scrip on BSE closed 0.3% higher at Rs 1,744. The company's board has recommended a dividend of Rs 9.25 per share.

In 2022, Adani Group said it has clinched a deal to acquire a controlling stake in Holcim Ltd's businesses in India for $10.5 billion, marking the ports-to-energy conglomerate's entry into the cement sector.

"The Adani Family, through an offshore special purpose vehicle, announced that it had entered into definitive agreements for the acquisition of Switzerland-based Holcim Ltd's entire stake in two of India's leading cement companies - Ambuja Cements Ltd and ACC Ltd," the group had said in a statement.

ACC's earnings before interest and taxes (EBIT) margins fell to 8.6% from 12.2%, a year ago.

For ACC, power and fuel expenses fell 9.4%, while total expenses rose 14% on the back of higher input costs.

It also saw a one-off expense of 664.2 million rupees related to a restructuring cost, ACC said.

ACC shares have fallen about 26% since Jan. 24 after US short seller Hindenburg Research's scathing note on Adani Group companies.

While the group has denied all allegations, ACC said on Thursday an independent law firm's review of Hindenburg's allegations had confirmed the company's compliance with applicable laws and regulations.