ACC’s sales volume grows by 9% to 10.2 mn tonnes, the highest in the last 5 years

• Q1 Operating EBITDA at Rs. 679 Cr, Rs. 664 PMT, 13.2% EBITDA margin
• Operating cost improved by 7% YoY at Rs 4,377 PMT
• Cash & Cash Equivalent at Rs. 2,747 Cr
• PAT at Rs. 361 Cr

 NE BUSINESS BUREAU

Ahmedabad, July 30

ACC Limited, the cement and building materials company of the diversified Adani Portfolio, on Tuesday announced its sales volume grew by 9 per cent to 10.2 million tonnes (9.4 mt), the highest in the last five years duringr Q1 FY’25. This steady and sustainable performance is attributed to volume growth, cost reduction and improvement in efficiency parameters.

Its June quarter net profit was down 23 per cent to Rs 361 crore against Rs 466 crore logged in the same period last year on the back of lower realisation.

The company has managed to cut costs by reducing the kiln fuel cost to Rs1.73 per 1000 kCal from Rs2.14 by changing the fuel basket and higher consumption of alternative fuels.

Further, the thermal value reduced from 757 kCal to 739 kCal and move improvement is expected in the coming quarters.

Ajay Kapur, CEO – Cement Business, Adani Group, said, “ACC’s performance strengthens our drive to consistently stay a frontrunner in the industry. 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 delivering value to our stakeholders in a sustainable manner.”

He added that the RMX business is growing steadily, with improved  profitability driven by improved efficiency parameters and optimising its footprint, he added.

The company has cash and cash equivalent of Rs2,747 crore.

The cement industry, which accounts for 23 per cent of the building materials industry, has a strong correlation with GDP growth.

With a stable government and progressive policies, the economy is expected to grow 6.5-7 per cent this fiscal and the cement industry may grow between 7-9 per cent, it said.

The Budget has allocated ₹11.11 lakh crore for infrastructure projects, which represents 3.4 per cent of GDP. Phase IV of Pradhan Mantri Gram Sadak Yojana will be launched to provide all-weather connectivity to 25,000 rural habitations. All these measures are expected to bring buoyancy to cement demand, said the company.

Financial Highlights

• Revenue at Rs. 5,155 Cr, Operating EBITDA at Rs. 679 Cr, EBITDA margin at 13.2%.
• Cash & Cash equivalent at Rs. 2,747 Cr, with Net Worth at Rs. 16,552 Cr, up by Rs. 219 Cr from Q4 FY’24.

• EPS (Diluted) at Rs. 19.2 during the quarter.

Financial Performance for the quarter ended June 30, 2024