ACC reports robust quarterly performance, Q3 operating EBITDA up 139% at Rs. 905 cr
Ahmedabad, 25 January, 2024: ACC Limited, the most trusted legacy brand and one of India’s largest cement and building materials company of the diversified Adani Group, today announced robust Q3 FY’24 financial results on the back of a sharp growth in volume and improvement of important KPIs.
Mr. Ajay Kapur, Whole Time Director & CEO, ACC Limited, said, “ACC’s financial performance has seen a complete turnaround in the last 12 months. Recent capacity additions have taken the Adani Group’s cement capacity to 77.4 MPTA. This will enable volume and revenue growth on a sustainable basis.”
Operational Highlights:
- Operational excellence initiatives continue to help in improvement of productivity, performance, and optimisation of cost.
- 1 MTPA cement grinding commenced at the Ametha Integrated Cement Plant. Earlier, in Sept 2023, 3.3 MTPA clinker production facility was commissioned. (In January 2024, ACC announced acquisition of 55% stake in Asian Concretes and Cements Private Ltd (ACCPL), which along with its subsidiary Asian Fine Cements Pvt Ltd (AFCPL), has 2.8 MTPA cement capacity). This will enable further improvement in volume growth in the coming quarters.
- Kiln fuel cost reduced, driven by optimization of fuel mix and higher consumption of alternative fuels.
- 3 MW of waste heat recovery system (WHRS) at Ametha commissioned in Q3 FY’24, resulting in increase in WHRS capacity to 46.3 MW. Work on WHRS facility at Chanda (18 MW) & at Wadi (21.5 MW) is on track and will be commissioned in FY’25. This will take the total capacity of WHRS to 85.8 MW. This will result in WHRS share in total power mix ~@25%.
| Particulars (YoY) | Q3 FY’24 | 9M FY’24 |
| Sales Volume
(Clinker & Cement) |
Growth of
16.5% at 8.9 MioT |
Growth of
19.1% at 26.4 MioT |
| Kiln Fuel
Cost |
Down by 28%
(Rs 2.59 to Rs 1.86 per ’000 kCal) |
Down by 32%
(Rs 2.88 to Rs 1.95 per ’000 kCal) |
| WHRS as a % of total power Consumption | Up by
2.7 pp to 9.1% |
Up by
5.1 pp to 8.8% |
Financial Highlights:
The company has achieved significant improvements in all financial matrices. Revenue has grown 8.3%, Operating EBITDA (excl. other income) has grown 139%, EBITDA margin expanded by 10 pp from 8.4% to 18.4%.
Cash & Cash equivalent at Rs. 4,282 crore is an improvement over previous quarter (Rs. 3,634 crore). The Company’s consolidated net worth has improved by Rs.538 crore and stands at Rs.15,361 crore. Working capital is amongst the best in comparison with peers and stands at 28 days cycle.
Sharp jump in EPS from Rs. 6.01 in Dec’22 to Rs. 28.55 in Dec’23. Shareholder’s net worth reflects turnaround in all KPIs, resulting in a robust financial performance and balance sheet strength.
Consolidated Financial Performance for Q3 and 9M FY ‘24:
| Particulars | UoM | Q3
FY’24 |
Q3
FY’23 |
9M
FY’24 |
9M
FY’23 |
| Sales Volume (Cement & Clinker) | Million
Tonnes |
8.9 | 7.6 | 26.4 | 22.2 |
| Sales Volume Ready Mix Concrete |
Million Cubic Meters | 0.66 | 0.79 | 2.07 | 2.37 |
| Revenue from Operations | Rs. Cr. | 4,914 | 4,537 | 14,550 | 12,993 |
| Operating EBITDA & Margin
(Excluding Other Income)
|
Rs. Cr | 905 | 379 | 2,225 | 822 |
| Rs. PMT | 1,017 | 496 | 841 | 370 | |
| % | 18.4% | 8.4% | 15.3% | 6.3% | |
| Other Income | Rs. Cr | 86 | 41 | 373 | 164 |
| EBIT | Rs. Cr | 756 | 247 | 1,950 | 475 |
| EBIT Margin | % | 15.4% | 5.5% | 13.4% | 3.7% |
| Profit after Tax | Rs. Cr | 538 | 113 | 1,392 | 253 |
| EPS (Diluted) | Rs. / Share | 28.55 | 6.01 | 73.91 | 13.44 |
Branding:
As part of our branding initiative, thematic campaigns were launched during the Cricket World Cup on new channels and digital platforms. We were the official partner of ‘Gujarat Giants’ for the 10th Pro Kabaddi League, bringing together a legacy of excellence and passion for promoting sports which is essential for the youth and development of the country. We are proud partners of the Gulf Giants.
Outlook:
Cement demand in India will continue to grow at 7-8%, primarily fuelled by investments in infrastructure and large-scale residential housing projects. This growth aligns strategically with the broader economic development goals of the country, as we move from a USD 3.5 trillion to USD 7.3 trillion economy by 2030. Opportunity buy of low cost petcoke will help to further optimise fuel costs in the coming quarters and will augur well in our cost optimisation journey.
ESG Highlights:
- ACC maintains a consistent emphasis on a low carbon portfolio through the introduction of eco-friendly products and solutions.
- We are making all plants with built-in Waste Heat Recovery Systems and making a transitional shift towards green power as a major source of our energy needs.
- Our target is to attain a five-fold water-positive status by 2030.
- More than 1.1 million people continue to benefit from our CSR initiatives.
Awards:
- ACC won the ‘IconSWM-CE Excellence Award’ for its sustainable co-processing practices at the 13th IconSWM-CE & IPLA Global Forum 2023.
- ACC was recognized with ‘Gold Award in OH&S Category’ at the 15th EXCEED OH&SS Award 2023.
- ACC Lakheri Plant won four awards during the 37th Mines Safety Week.
- ACC Bargarh Plant bagged Gold Awards at the 14th Kalinga Safety Excellence Awards.
- ACC was felicitated with the prestigious ‘Safety Excellence Award’ at the UPES Sustainability Fair 2.0.
