ACC Limited , a leading cement manufacturer in India, has reported impressive operational and financial results for the quarter ended June 30, demonstrating strong growth across key metrics.

Record-Breaking Sales and Revenue

ACC achieved its highest quarterly sales volume of 18.40 million tonnes, marking a significant 20% year-on-year increase. This robust performance propelled the company's revenue beyond the Rs 10,000 crore milestone, reaching Rs 10,289.00 crore, up 23% compared to the same quarter last year.

Substantial EBITDA Growth

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a remarkable 53% year-on-year jump, reaching Rs 1,961.00 crore. This substantial increase in EBITDA underscores ACC's operational efficiency and cost management strategies.

Financial Strength and Expansion Plans

ACC continues to maintain a strong financial position, remaining debt-free with a net worth of Rs 66,436.00 crore. The company's current cement capacity stands at 104.50 MTPA, with plans to expand to 118.00 MTPA by March 2026, positioning ACC for continued growth in the Indian cement market.

Sustainability Initiatives

In line with its commitment to sustainable practices, ACC commissioned 57 MW of wind power capacity during the quarter. This addition brings the company's total renewable energy capacity to 473 MW, reinforcing its focus on reducing carbon footprint and embracing clean energy solutions.

Operational Highlights

Strategic Developments

ACC received approval from the National Company Law Tribunal (NCLT) for its scheme of amalgamation with Adani Cementation Limited, marking a significant step in its corporate restructuring efforts.

Brand Recognition

ACC has been ranked as 'India's Most Trusted Cement Brand' by TRA Research in its Brand Trust Report for the fourth consecutive year, highlighting the company's strong market position and consumer confidence.

Outlook

With robust Q1 performance, ongoing capacity expansion plans, and a focus on sustainability, ACC appears well-positioned to capitalize on the growing demand in India's infrastructure and housing sectors. The company's strong financial health and operational efficiency provide a solid foundation for future growth and market leadership in the cement industry.

The company has scheduled an analysts and institutional investors call to discuss these results and future prospects.

ACC Limited , a prominent player in the Indian cement industry, has reported a mixed set of financial results for the first quarter of the fiscal year. The company's performance showcased robust revenue growth but fell short of profit expectations.

Revenue Growth Outpaces Estimates

ACC's revenue from operations saw a significant year-over-year increase, climbing to ₹6,014.71 crore in Q1, up from ₹5,113.72 crore in the same period last year. This 17.6% growth surpassed market expectations of ₹5,454.00 crore, indicating strong demand and improved pricing power in the cement sector.

Profit Rises, But Misses Projections

While the company's net profit showed improvement, it fell short of analyst estimates. ACC reported a net profit of ₹384.50 crore for the quarter, up from ₹366.23 crore year-over-year. However, this figure was below the projected ₹512.00 crore, suggesting potential cost pressures or other factors affecting profitability.

EBITDA and Margin Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose to ₹770.00 crore from ₹677.00 crore in the previous year, reflecting an improvement in operational efficiency. However, this fell short of the estimated ₹811.00 crore.

ACC's EBITDA margin saw a slight decline, dropping to 12.74% from 13.02% year-over-year. This decrease, coupled with the margin falling below the estimated 14.9%, indicates potential challenges in maintaining profitability amid rising costs.

Segment Performance

The cement segment, which forms the core of ACC's business, reported revenue of ₹5,714.95 crore for the quarter. The Ready Mix Concrete segment contributed ₹416.28 crore to the total revenue.

Cost Factors

Despite the revenue growth, ACC faced increased costs in several areas:

These rising costs likely contributed to the pressure on profit margins.

Management's Perspective

While the official statement from ACC's management was not provided, the results suggest that the company has been successful in driving sales growth but faces challenges in cost management and profitability.

Looking Ahead

As ACC navigates through a dynamic market environment, investors and analysts will be keenly watching how the company balances its growth strategy with profitability in the coming quarters. The ability to manage costs effectively while maintaining strong sales momentum will be crucial for ACC's performance in the fiscal year ahead.