India: ACC has blamed a drop in earnings in the fourth quarter of its financial year on higher fuel prices. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 15% year-on-year to US$71.9m in the quarter that ended in March 2023 from US$64.7m in the same period in 2022. However, it said that fuel prices were expected to drop due to synergies with other subsidiaries within Adani Group. It is also working on reducing operational costs by reducing its clinker factor, logistics costs and growing sales of blended cement products. It added that it had reduced its kiln fuel cost by 10% in the fourth quarter by taking the measures mentioned above and by increasing its use of alternative fuels.
The company changed its financial year to one ending in March 2023 during the reporting period. Its calculated net revenue rose by 10% year-on-year to US$2.16bn for its 2023 financial year that ended on 31 March 2023 compared to US$1.97bn in the previous 12 months. Its cement and clinker sale volumes grew by 6% to 31Mt from 29Mt.
Ajay Kapur, the chief executive officer of ACC, said “Our 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 and improve.”
