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ACC Share Price Drops Over 4% After Q4 Profit Slips 20% Despite 13% Sales Surge; FY25 Revenue Up 5.6%

Written by: Kusum KumariUpdated on: Apr 25, 2025, 10:05 AM IST
ACC Share Price Drops Over 4% After Q4 Profit Slips 20% Despite 13% Sales Surge; FY25 Revenue Up 5.6%
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Cement maker ACC reported a 20.4% drop in net profit for the fourth quarter of FY25, with profit falling to ₹751.03 crore compared to the same period last year. Despite the dip in profits, the company saw a 12.7% rise in revenue, which reached ₹5,991.67 crore. 

Higher Sales and Premium Products Boost Revenue

ACC, owned by the Adani Group, said the growth in revenue was driven by increased trade sales volume and a higher share of premium products, which made up 41% of trade sales, 7% more than last year.

In Q4 FY25, cement and clinker sales volume grew by 13.33% to 11.9 million tonnes.

Read More, Adani Energy Shares in Focus Q4 FY25 Profits Soar 79% YoY – What’s Driving the Growth? 

Expenses and EBITDA Margins

Total expenses for the quarter rose 13.11% year-on-year to ₹5,514.82 crore.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at ₹830 crore, down slightly by 0.84%. The EBITDA margin fell to 13.7%, compared to 15.5% last year.

Full-Year Performance

For the full financial year (FY25), ACC recorded:

  • Revenue: ₹20,789.1 crore (up 5.63% YoY) 
  • Profit: ₹2,402.12 crore (up 2.9% YoY) 

Sequential Performance

Compared to the previous quarter, revenue rose 15.10%, but profit dropped 31.21%. The quarter also saw a nationwide cement price hike of ₹12 per bag, which could have impacted margins.

Efficiency and Cost Improvements

The company reported lower kiln fuel costs due to the use of low-cost imported petcoke and better coal linkage. Logistics costs also fell by 8% to ₹937 per tonne, thanks to stable diesel prices and improved supply chain efficiency.

Strong Financials and Dividend Announcement

ACC ended the quarter with ₹3,593 crore in cash and cash equivalents, and reported its highest-ever net worth at ₹18,559 crore, an increase of ₹2,227 crore over the year.
It also announced a dividend of ₹7.50 per equity share for its shareholders.

Vinod Bahety, Whole Time Director & CEO of ACC, said the company is “stronger, more agile, and future-ready.” He highlighted capacity expansions, new grinding units, and modernisation efforts aligned with India’s growing infrastructure demands.

About ACC Limited 

ACC Limited is a leading Indian cement manufacturer based in Mumbai. It operates as a subsidiary of Ambuja Cements and is part of the Adani Group. Originally founded on August 1, 1936, in Mumbai, the company was formerly known as The Associated Cement Companies Limited before being renamed to ACC Limited on September 1, 2006.

As of 9:58 AM IST on April 25, ACC share price were trading at ₹1,964.20, down ₹102 or 4.94% for the day. The stock opened at ₹2,075.90 and touched an intraday high of ₹2,075.90 and a low of ₹1,963.00. ACC’s market capitalisation stands at ₹36,900 crore, with a price-to-earnings (P/E) ratio of 14.25 and a dividend yield of 0.38%. Over the past 52 weeks, the stock has touched a high of ₹2,844.00 and a low of ₹1,778.45.

Conclusion

While ACC’s Q4 profit took a hit due to rising costs and margin pressures, strong volume growth, operational efficiencies, and capacity expansion indicate a positive long-term outlook. The company remains focused on leveraging demand in India’s growing infrastructure sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.                         

                         

Investments in securities market are subject to market risks, read all the related documents carefully before investing.        

 

Published on: Apr 25, 2025, 10:04 AM IST

Kusum Kumari

Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.

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