Adani Group subsidiary ACC Ltd is set to unveil its financial results for the second quarter of the 2023-24 fiscal on October 26, according to a stock exchange filing.

The company is expected to report revenue from operations of ₹4,549 crore, marking a robust 14.1% increase from the previous year's Q2 figures of ₹3,987 crore.

ACC's operating profit is set to exhibit a growth of 4,030%, reaching ₹669 crore, a substantial improvement from the Q2 FY23 figure of ₹16.20 crore. Notably, the company's operating margins are expected to substantially improve, standing at 14.7% in Q2 FY24, compared to a mere 0.4% in the same quarter of the previous year.

The company's Profit After Tax (PAT) is anticipated to experience a remarkable turnaround, with a positive growth of Rs 389 crore, in stark contrast to the previous year's loss of Rs 87 crore.

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In the current quarter, factors at play include expectations of realizations remaining flat or experiencing a 4%-5% year-on-year decrease. However, margin growth is anticipated to be substantial, primarily due to a low base in the previous year. Notably, ACC has experienced good volume growth, with a 19% year-on-year increase, reaching 8.15 million tonnes compared to 6.85 million tonnes.

Margin growth is further supported by the company's operating leverage, contributing to its year-on-year margin improvement. Enhanced operational efficiency, likely achieved through synergy within the Adani Group, is another factor driving margin growth. Additionally, a moderation in fuel costs is expected to have a positive impact on ACC's margins.

Key aspects to watch for in ACC Ltd's Q2 FY24 report include updates on ongoing expansion projects and their progress, insights into the company's cost management strategies to maintain profitability, indications of a potential revival in demand for ACC's products, and any remarks or updates regarding mergers or partnerships within the company.

The company's pan-India presence has allowed it to establish a widespread footprint, reaching consumers across the country. Additionally, ACC has efficiently utilised its production capacity, resulting in high capacity utilisation.