ACC achieves highest quarterly revenue over last 5 years at Rs 4,614 crore
Oct 24, 2024
New Delhi [India] October 24 : Adani group's cement unit ACC Ltd posted its results on Thursday. The company's revenue from operations was reported highest in the last 5 years at Rs 4,614 crore in the second quarter of FY25 ending September 30th, which is up from Rs 4,435 crore in the year-ago period. Higher revenue was driven by higher trade sales volume and premium products.
ACC's trade sales were up 2 per cent in the quarter and the share of premium products in the total trade sales increased to 36 per cent, indicating that a larger portion of these sales were from higher-margin premium products.
During the quarter under review, the company's expenses increased by 8 per cent to Rs 4,452.73 crore as the cost of raw materials surged by Rs 123 crore.
The company's operating EBITDA (Earnings Before Interest Taxes, Depreciation and Amortization) declined to Rs 436 from Rs 549 crore while its margins fell to 9.5 per cent from 12.4 per cent. Earnings per share (EPS) reduced to Rs 10.5 during the quarter.
Overall volume increased by 15 per cent (YoY) supported by an increase in trade volumes and higher premium product volumes (14 per cent YoY).
The cement maker remains optimistic about demand and expects cement consumption to grow by 4-5% in FY 2025, driven by steady infrastructure development and housing projects.
Ajay Kapur, Whole Time Director and CEO of ACC Ltd, said, "Our performance in Q2 reinforces our standing as a frontrunner in the cement industry. Our financial results this quarter - fuelled by higher volumes, cost optimization, increasing efficiencies, and agility - build the momentum for our growth strategy for FY'25 and beyond. Our growth is being driven by robust demand for high-quality cement products across all markets, as well as our continuous efforts to optimise operations and lead on all ESG parameters. Our leadership status is highlighted in our drive for operational excellence supported by innovation, sustainability, and a customer-centric approach. We continue to deliver strong value for our stakeholders as we aim for sustained profitability through our competitive advantage."
The cement maker, however, reported a 48.5 per cent fall in its consolidated net profit at Rs 200 crore in the quarter because of lower demand and a near-decade-low prices of cement. The company had reported a net profit of Rs 387.88 crore during the July-September period of the preceding 2023-24 fiscal.
