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ACC misses Street estimates to report net loss of Rs 87.3 crore as elevated costs hurt

ACC misses Street estimates to report net loss of Rs 87.3 crore as elevated costs hurt

ACC misses Street estimates to report net loss of Rs 87.3 crore as elevated costs hurt
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By Nigel D'Souza  Oct 17, 2022 3:16:58 PM IST (Published)

Cement maker ACC on Monday reported its earnings for the July to September quarter, during which it witnessed a net loss of Rs 87.3 crore as against CNBC-TV18 poll expectations of Rs 110 crore.

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Impacted by elevated costs, the company, which follows January-December financial year, recorded a weaker-than-expected margin of 0.4 percent as analysts had expected the three months to witness a combination of lower realisations sequentially and higher costs. The company's volumes at 6.85 mt also came in lower than expected at 7 mt.
Analysts polled by CNBC-TV18 had flagged a spike in cost led by power-fuel cost due to a lag in consumption of high-cost inventory.
ACC's revenue, too, fell marginally short of projections at Rs 3,987 versus the poll forecast of Rs 3,990 crore. In the same quarter last year, the firm posted revenue of Rs 3,749 crore.
The margin increase in revenue, dip to loss, and squeezing margin comes as power and fuel costs went up 67 percent on a year-on-year basis to Rs 1,317crore versus Rs 78. 8 crore. This is, however, when compared sequentially.
Also, freight and forwarding costs increased 15 percent to Rs 988 crore against Rs 860 crore in the same quarter of the previous financial year. Other expenses also jumped 12 percent to Rs 610.4 crore versus Rs 547crore.
The weak operational performance for the quarter and nine months ended September 30 was further knocked by an exceptional hit of Rs 16.25 crore spent towards special incentives for certain key employees pursuant to change in the ownership and control.
In its exchange filing, the company also said that from September 16, it had terminated its agreement with Holcim Technology Limited for payment of technology and know-how fees at 1 percent of eligible net sales.
Following the financial results announcement, ACC shares were trading half a percent higher. The stock has slipped close to 15 percent in the past month.
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