ACC Posts Highest Ever Volume Growth, Quarterly Revenue in Q3 of FY25

New Delhi, January 27, 2025: Cement and building materials company ACC Limited has announced a steady financial performance during the third quarter and nine months (9M) of FY’25 ended December 31, 2024. The performance comes on the back of volume growth, cost optimisation and improved efficiency parameters.

Whole Time Director & CEO, ACC Ltd, Ajay Kapur said, “Our Q3 results demonstrate our strategic focus on driving growth through higher volumes, cost optimisation, and enhanced efficiencies. With strong demand for our premium cement products, and our commitment to excellence on all parameters in line with our ESG leadership, we are leveraging innovation and sustainability to maintain our competitive edge and maximise stakeholder value. We are well-poised to achieve sustained profitability and capitalise on our strategic vision set forth for our business.”

Operational Highlights

• The engines of efficiency drive, cost initiative and investments to overhaul all plants has delivered phenomenal results on overall cost reduction and volume improvements.
• All business KPIs like volumes, efficiencies, cost and capex have shown healthy improvements, reinforcing cost leadership journey.
• Volume increased by 21 per cent YoY supported by increase in trade volumes and higher premium product volumes (11 per cent YoY), ensuring market leadership.
• Optimised Fuel Basket, with use of low cost imported petcoke improved linkage and captive coal consumption and synergies with Group companies have resulted in 10 per cent reduction in Kiln fuel cost INR 1.86 to INR 1.68 per ’000 Kcal.
• Thermal value reduced from 739 kCal to 732 kCal, expect further improvement in coming quarters.
• Logistics costs reduced by 9 per cent @INR 939/ton, driven by efficiency improvement journey (Secondary lead reducing by 3 Km, direct dispatch up by 7 pp @51 per cent). Through various freight negotiation initiatives, road PTPK has decreased by 6 per cent YOY. This is going to be further reduced with roll out of initiatives viz. wheeler rationalisations, BCFC rakes etc.

Financial Highlights

• Highest ever revenue in Q3 Series over last 5 years at INR 5,927 Cr, driven by higher trade sales volume (up by 11 per cent) and premium product as percentage of trade sales at 32 per cent.
• Higher volume along with improved operational parameters resulted in growth in all business parameters.
• Operating EBITDA at INR 1,116 Cr, EBITDA margin at 18.8 per cent.
• Cash & Cash equivalent at INR 2,526 Cr, with highest ever Net Worth at INR 17,816 Cr, up by INR 1,091 Cr during the current quarter
• EPS (Diluted) at INR 58.0 during the quarter.

ESG Updates

• 200 MW Solar Power at Khavda started, will lead to reduction in power cost in upcoming quarters.
• Committed to Net Zero by 2050, with ACC and Ambuja Cements being the only 2 cement companies in India undergoing Net Zero target validation from SBTi.
• Became member of United Nations Global Compact (UNGC), a global initiative to implement universal sustainability principles.
• Undertaken noteworthy initiatives on renewable power, water conservation, circular economy, TSR, tree plantation along with high share of blended cement in product mix.
• Created societal value for over 1.22 lakh people by contributing to fields like healthcare, education, employment, and sustainable livelihoods.
• Range of innovative products, including ACC ECOMaxX, ACC AEROMaxX, and ACC Coolcrete, continues to expand, adding to the wide array of eco-friendly options.

Branding and Technical Services

• Partnered with the Gujarat Giants in Pro Kabaddi League Season 11, one of India’s premier sports leagues.
• ACC Certified Technology implemented at 37,214 customer sites, making their homes stronger.
• Trained 10,300+ Contractors under various skill upgradation workshops with 3,300+ plant visits, aimed at deeper understanding of our products.