ACC Limited Reports Strong Q1 FY’25 Results with Improved Efficiency and Growth

On July 29, 2024, ACC Limited, part of the Adani Portfolio, announced its Q1 FY’25 results. The company credited its steady and sustainable performance to increased sales, reduced costs, and better efficiency.

Operational Highlights: Q1 FY’25 Year-over-Year

In Q1 FY’25, ACC Limited saw a 9% increase in clinker and cement sales volume, reaching 10.2 million tonnes. The company also reduced its kiln fuel cost by 19%, from ₹2.14 to ₹1.73 per 1,000 kCal. Additionally, the contribution of waste heat recovery systems (WHRS) to total power consumption rose by 1.6 percentage points, reaching 10%.

Financial Highlights

ACC Limited reported a revenue of ₹5,155 crore and an operating EBITDA of ₹679 crore, resulting in an EBITDA margin of 13.2% for Q1 FY’25. The company’s cash and cash equivalents stood at ₹2,747 crore, with a net worth of ₹16,552 crore, an increase of ₹219 crore from Q4 FY’24. The diluted EPS for the quarter was ₹19.2.

Outlook

The Indian cement industry, making up 23% of the country’s building materials sector, is closely linked to India’s GDP growth. With a stable government and progressive policies, the Indian economy is expected to grow by 6.5% to 7.0% in FY’25. The cement industry is projected to grow by 7.0% to 9.0%. The FY’25 Budget has allocated ₹11.11 lakh crore for infrastructure projects, representing 3.4% of GDP.

Mr. Ajay Kapur, CEO of Cement Business, Adani Group, said, “ACC’s performance strengthens our drive to stay a frontrunner in the industry consistently. Our performance this quarter exemplifies our efficiency and agility. Our strategic decisions, customer-centric approach, and operational excellence continue to drive growth. As we move forward, we remain committed to sustainably delivering value to our stakeholders.”

About ACC Limited

ACC Limited, a subsidiary of Ambuja Cements and part of the Adani Group, is India’s leading producer of cement and ready-mix concrete. The company operates 20 cement plants and over 82 concrete plants and has a nationwide network of partners.

On July 30, 2024, the share price of ACC Limited opened at ₹2,560.00, touching the day’s high of ₹2,614.75 as of 09:44 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.