ACC Ltd. Reports Record Q2 Revenue of Rs. 4,614 Crore, Driven by Volume Growth and Cost Optimization

New Delhi / October 24, 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 on Thursday, 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, the company said in a press statement.

The company achieved its highest-ever revenue for the second quarter in the past five years, reaching Rs. 4,614 crore. This growth was fueled by a 2% increase in trade sales volume and a rise in premium products, which accounted for 36% of trade sales, marking a 3.7 percentage point increase year-over-year. Operating EBITDA stood at Rs. 436 crore, with an EBITDA margin of 9.5%. The company reported cash and cash equivalents of Rs. 2,921 crore and a net worth of Rs. 16,725 crore, reflecting an increase of Rs. 172 crore during the current quarter. Additionally, the diluted earnings per share (EPS) for the quarter was Rs. 10.5, the statement added. 

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.”

Key performance indicators (KPIs) related to volumes, efficiencies, costs, and capital expenditures have demonstrated substantial improvements, bolstering the company’s cost leadership strategy. Year-over-year, overall volume has surged by 15%, driven by increased trade volumes and a 14% rise in premium product volumes, solidifying the company’s market leadership position. Additionally, an optimized fuel basket, enhanced linkage, and increased captive coal consumption, along with synergies from group companies, have contributed to a 15% reduction in kiln fuel costs. The thermal value has also decreased from 768 kCal to 735 kCal, with expectations for further enhancements in the upcoming quarters, the statement added.