ACC Limited , a leading player in the Indian cement industry, has reported a robust performance for the second quarter, marking significant growth and maintaining a positive outlook for the year ahead.

Record-Breaking Volume Growth

ACC achieved a record volume of 10.0 million tons in Q2, representing an impressive 16% year-over-year increase. This substantial growth underscores the company's strong market position and effective operational strategies.

Financial Highlights

The company's financial performance for Q2 reflects its strong operational execution:

The significant jump in profitability metrics demonstrates ACC's ability to capitalize on market opportunities and manage costs effectively.

Operational Efficiency and Strategic Initiatives

ACC's performance has been bolstered by several key operational and strategic moves:

• Synergies with Ambuja and Associates: The company is reaping significant benefits from its associations with Ambuja Cement and other partners.
• Renewable Energy Focus: ACC is benefiting from reduced power costs, with the Adani Cement business RE capacity reaching 673 MW.
• Capacity Expansion: The Salai Banwa and Kalamboli expansion programs are on track to add 3.4 MTPA capacity in Q3.
• Digital Transformation: The launch of CiNOC (Cement Intelligent Network Operations Centre) is set to infuse AI deeply into operations, potentially revolutionizing efficiency.

Market Outlook and Future Prospects

Despite challenges from prolonged monsoons, ACC maintains its annual growth forecast of 7-8%. The company expresses a positive outlook, driven by anticipated cost reductions, premium product offerings, and digital upgrades.

Mr. Vinod Bahety, Whole-Time Director & CEO of ACC Limited, commented on the results: "This quarter has been instrumental for the cement sector. Despite challenges, the sector stands to benefit from several favorable developments including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the withdrawal of coal cess. These developments will support steady demand momentum going forward."

Sustainability and ESG Initiatives

ACC continues to make strides in its sustainability efforts:

• Maintained Zero Liquid Discharge across all manufacturing sites
• On track with its commitment to plant 8.3 million trees by 2030
• Investing in community development programs focusing on education, healthcare, livelihoods, and infrastructure

As ACC navigates through the fiscal year, its strong Q2 performance, coupled with strategic initiatives and a positive industry outlook, positions the company well for continued growth and value creation for its stakeholders.

Gautam Adani, Chairman of Adani Group, has issued a letter to ACC Limited shareholders, addressing recent developments and the group's performance in the wake of regulatory scrutiny. The letter comes after the Securities and Exchange Board of India (SEBI) dismissed allegations against the Adani Group that were raised in a report by Hindenburg Research on January 24, 2023.

SEBI's Verdict and Group's Resilience

Adani described SEBI's decision as a "resounding and unequivocal verdict," emphasizing that it validates the group's transparency, governance, and purpose. He stated, "What was meant to weaken us has instead strengthened the very core of our foundations."

Impressive Financial Growth

The Chairman highlighted the group's financial performance during this challenging period:

The group's EBITDA showed a remarkable two-year CAGR of 25%, while the Gross Block expanded by nearly ₹2 lakh Cr in just two years.

Major Infrastructure Achievements

Adani outlined several significant projects completed during this period:

• Commissioned India's first container transshipment port at Vizhinjam
• Added 6 GW of renewable capacity, including the world's largest single-location renewable project at Khavda
• Commissioned the world's largest copper smelter and metallurgical complex
• Expanded the energy network with 7,000 circuit kms of transmission lines and 4 GW of new thermal capacity

Future Commitments

Looking ahead, Adani promised to:

1. Further strengthen governance standards
2. Accelerate innovation and sustainability
3. Continue investments in nation-building infrastructure projects

A Message of Gratitude and Resilience

The Chairman expressed profound gratitude to investors, lenders, suppliers, and partners for their support during challenging times. He concluded with a poetic quote emphasizing resilience: "The boat that fears the waves can never reach the shore, But those who keep on trying will win forevermore...."