Ahmedabad, 24 October 2024: ACC Ltd., the most trusted legacy cement brand, one of India’s largest cement and building materials company and part of the diversified Adani Group today announced sustainable financial performance for Q2 and first half-year (H1) of FY’25 on the back of volume growth, cost optimisation and improved efficiency parameters.
Mr. Ajay Kapur, Whole Time Director & CEO, 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.”
Operational Highlights
| Particulars (YoY) | Q2 FY’25 | H1 FY’25 |
| Sales Volume
(Clinker & Cement) |
Growth of 15% YoY, at 9.3 Mn T, highest ever volume in Q2 series in last 5 years | Growth of 11% YoY, at 19.5 Mn T, highest ever volume in H1 series in last 5 years |
| Kiln Fuel
Cost |
Reduced by 15%
(Rs. 1.85 to Rs. 1.57/’000 kCal) |
Reduced by 17%
(Rs. 2.00 to Rs.1.66/’000 kCal) |
| WHRS as a % of total power Consumption | Increased by
1.2 pp to 10.0% |
Increased by
1.4 pp to 10.0% |
| AFR consumption in Kiln | Increased by
2.8 pp to 10.2% |
Increased by
2.5 pp to 10.7% |
- KPIs like volumes, efficiencies, cost and capex have shown healthy improvements in reinforcing cost leadership journey.
- Volume increased by 15% YoY supported by increase in trade volumes and higher premium product volumes (14% YoY), ensuring market leadership.
- Optimised Fuel Basket, improved linkage and captive coal consumption and synergies with Group companies have resulted in 15% reduction in Kiln fuel cost
- Thermal value reduced from 768 kCal to 735 kCal, expect further improvement in coming quarters.
Financial Highlights
- Highest ever revenue in Q2 series over last 5 years at Rs. 4,614Cr, driven by higher trade sales volume (up by 2%) and premium product as % of trade sales at 36% (up by 3.7 pp YoY)
- Operating EBITDA at Rs. 436 Cr, EBITDA margin at 9.5%.
- Cash & Cash equivalent at Rs. 2,921 Cr, with Net Worth at Rs. 16,725 Cr, up by Rs. 172 Cr during the current quarter
- EPS (Diluted) at Rs. 10.5 during the quarter.
Financial Performance for the Quarter ended September 30, 2024:
| Particulars | UoM | Q2 FY’25 | Q2 FY’24 |
| Sales Volume
(Cement and Clinker) |
Million
Tonnes |
9.3 | 8.1 |
| Sales Volume Ready Mix Concrete |
Million M3 | 0.61 | 0.64 |
| Revenue from Operations | Rs. Cr | 4,614 | 4,435 |
| Operating EBITDA & Margin | Rs. Cr | 436 | 549 |
| % | 9.5 | 12.4 | |
| Rs. PMT | 469 | 676 | |
| Other Income | Rs. Cr | 159 | 210 |
| Profit before Tax | Rs. Cr | 284 | 519 |
| Profit after Tax | Rs. Cr | 200 | 388 |
| EPS (Diluted) | Rs. / Share | 10.5 | 20.6 |
Financial Performance for the Half-Year ended September 30, 2024:
| Particulars | UoM | H1 FY’25 | H1 FY’24 |
| Sales Volume
(Cement and Clinker) |
Million
Tonnes |
19.5 | 17.5 |
| Sales Volume Ready Mix Concrete |
Million M3 | 1.28 | 1.41 |
| Revenue from Operations | Rs. Cr | 9,768 | 9,636 |
| Operating EBITDA & Margin | Rs. Cr | 1,115 | 1,320 |
| % | 11.4 | 13.7 | |
| Rs. PMT | 571 | 753 | |
| Other Income | Rs. Cr | 230 | 287 |
| Profit before Tax | Rs Cr | 768 | 1,145 |
| Profit after Tax | Rs. Cr | 559 | 854 |
| EPS (Diluted) | Rs. / Share | 29.7 | 45.4 |
ESG Updates
- ACC has released its Sustainability Report for FY’24, which is now available on the company’s website
- The range of innovative products, including ACC ECOMaxX, ACC AEROMaxX, and ACC Coolcrete, continues to expand, adding to the wide array of eco-friendly options
- ACC is committed to achieving Net Zero by 2050. Ambuja and ACC are the only two cement companies in India undergoing Net Zero target validation from SBTi
- ACC achieved a TSR of 10.2% and Green energy usage of 14.1% in Q2 FY’25, significantly higher than the comparable figures in Q2 FY’24
- ACC utilized over 6.4 million tonnes of waste-derived resources in H1 FY’25, embracing the principles of a circular economy
- ACC is committed to planting 5.93 million trees by 2030, in alignment with the Adani Group’s plan to plant 100 million trees
- ACC has created societal value for over 1.45 million people up to H1 FY’25 through various activities in education, healthcare, skill development, and sustainable livelihoods
Branding and Technical Services
- ACC launched new Brand Film ‘The Bridge of Unity’, honouring the glorious diversity of India on 78th Independence Day.
- ACC presents #BharoseKeSaathi, short documentary celebrating the stories of success of contractors associated with ACC over the years.
- Celebrated Engineer’s Day by organising various activities during September month, including Concrete Talks, technical lectures, panel and group discussions.
- Conducted ‘Skill Building Workshops’ across various domains for ~8,900+ Contractors during H1 FY’25.
Digitalisation
- A state-of-the-art in-plant automation covering automated weighbridge operations, vehicle movement control and tracking, vehicle identification, intelligent order allocation, auto truck sequencing, and packing plant automation has been implemented across some plants
- ‘Adani Cement Connect’- the Digital Sales platform allows dealers to place orders and check real-time outstanding payments, invoices, credit and debit notes
- ‘Adani Rewards Connect’ – the Digital Rewards platform – enables contractors, dealers, and retailers to check their loyalty gains and redeem them using the rewards catalogue
- The Company has made significant advancements in its digitalization journey by modernizing its network infrastructure and implementation of SD-WAN, resulting in faster order processing and quicker business transactions.
Outlook
Overall, industry expects improvement in demand in H2 FY 2025, which is likely to be driven by post monsoon pickup in construction and housing activity. Government’s continued focus on infrastructure development – roads, highways, railways, and metros – will continue to remain as the key demand driver. Sanction of additional houses under the Pradhan Mantri Awas Yojana (Rural & Urban) along with increase in industrial and commercial capex is expected to meaningfully create future cement demand. We expect cement demand to register growth of 4-5% during FY 2025
Achievements
- ACC has been recognised amongst ‘Iconic Brands of India 2024’ by The Economic Times for the third year in a row
- ACC’s Chanda plant recognised as ‘Excellent Energy Efficiency Unit’ while 4 other plants received the ‘Energy Efficiency Unit’ honours at the 25th CII National Awards for Excellence in Energy Management 2024
- ACC plants received Platinum and Gold Awards at the 6th ICC National Occupational Health and Safety Conference & Awards