ACC Reports Profit of ₹388 Crore in Q2, Revenue Up by 11.2%

ACC Ltd, a prominent cement manufacturer, announced a consolidated net profit of ₹387.88 crore for the July-September quarter, marking a significant turnaround aided by various factors such as increased sales, lower kiln fuel prices, heightened demand for premium products, and operational enhancements. This positive financial outcome contrasts with the ₹87.32 crore loss reported in the same period last year, as disclosed by ACC, now under the umbrella of Adani Cement, in a filing with the BSE.

Revenue and Sales Growth

Total revenue from operations surged by 11.22% to ₹4,434.73 crore in the quarter compared to ₹3,987.34 crore in the corresponding period of the previous year. The company witnessed a notable 17.4% year-on-year increase in sales volume (cement & clinker), reaching 8.1 million tonnes during the September quarter, as stated in its earnings report.

Insights from ACC’s Leadership

Ajay Kapur, ACC’s whole-time Director & CEO, attributed this growth to several factors, including improved demand for premium cement products, an increase in net dealer additions by 534 units across all markets, and a focus on operational efficiency and environmental sustainability.

Financial Performance Overview

ACC reported total expenses of ₹4,127.11 crore for the September quarter, marking a 0.84% decrease year-on-year. Meanwhile, total income rose by 14.48% to ₹4,644.78 crore during the same period.

Operational Efficiency and Cost Management

The company highlighted its ongoing efforts toward operational excellence, leading to improved productivity and performance, reduced operating costs, and a strengthened bottom line. Notably, kiln fuel costs were reduced by 42%, driven by fuel mix optimization and increased use of alternate fuels.

Outlook and Growth Ambitions

Looking ahead, ACC anticipates continued volumetric growth in the cement industry, fueled by robust demand stemming from increased spending on housing and infrastructure projects. The company remains optimistic about its growth prospects, aiming for leading margins in line with the favorable growth and demand outlook.

Market Performance

Shares of ACC Ltd closed at ₹1,907.80 apiece on the BSE, reflecting a 0.92% increase from the previous day’s closing price, signaling positive investor sentiment following the encouraging financial results.