Cement giant ACC on Monday posted a 40.61 per cent year-on-year (YoY) drop in standalone net profit at Rs 267.99 crore for the quarter ended June 30. ACC had reported a net profit of Rs 451.30 crore in the corresponding quarter last year.
Standalone revenue of the company decreased 37.31 per cent YoY to Rs 2,600.83 crore in Q1FY21, over Rs 4,149.72 crore in the same period last year. On a consolidated basis, the net profit of the company dropped to Rs 270.95 crore from Rs 455.68 crore in the corresponding quarter last year.
The company said it had shut its plants in accordance with government orders of lockdown. The company said due to the impact of Covid-19, the financial result may differ from that estimated at the date of the approval of the same. Many state governments had banned construction in order to contain the spread of COVID-19, which reduced the demand for cement and thereby reducing revenues.
In conclusion, it was expected that the revenue and profits will be down this quarter. The company is hopeful that as life goes back to normal, they can recover the losses it sustained during the pandemic.