ACC Shares Drop 8.5% Amid Bribery Charges, Market Losses Mount

ACC Ltd’s share price fell by 8.5% on November 21, 2024, dropping from ₹1,986.00 at the opening to a low of ₹1,868.20 by 11:31 AM, reflecting a significant decline. This drop in ACC’s stock price comes amid the recent bribery charges filed against Gautam Adani and other executives of its parent company, Adani Group, which led to a broader sell-off across all Adani Group stocks.

Shares of all Adani Group companies are down by 10% to 20%. As a result, the group’s companies have lost ₹2 lakh crore in market value so far.

Financial Highlights

Adani-owned ACC Ltd reported a 48.5% drop in profit for the fiscal second quarter, falling to ₹199.66 crore from ₹387.85 crore in the same quarter last year, missing estimates. The company’s revenue from operations grew by 4.0%, reaching ₹4,613.52 crore, compared to ₹4,434.73 crore in the previous year. This growth was driven by a 2% increase in trade sales volume and a higher share of premium products in trade sales, which rose to 36% (up 3.7 percentage points YoY). ACC’s EBITDA stood at ₹436.4 crore.

ACC’s cash and cash equivalents were ₹2,921 crore, with its net worth increasing by ₹172 crore to ₹16,725 crore during the quarter. The company also reported a 15% increase in clinker and cement sales volume, reaching 9.3 million tonnes, the highest Q2 volume in the last 5 years. ACC attributed this growth to increased trade and premium product volumes (up 14% YoY), maintaining its market leadership. Additionally, the thermal value decreased from 768 kCal to 735 kCal, and the company expects further improvement in the coming quarters.

About ACC Limited

ACC Limited, based in Mumbai, is an Indian cement manufacturer and a subsidiary of Ambuja Cements, which is part of the Adani Group. Originally established as The Associated Cement Companies Limited on 1 August 1936, the company changed its name to ACC Limited on 1 September 2006. As of 2024, ACC employs 3,852 people. 

On November 21, 2024, ACC share price opened at ₹1,986.00, touching the day’s low at ₹1,868.20, reflecting a decline of 8.9% as of 11:31 AM on NSE. 

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