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.

ACC Limited , one of India's leading cement manufacturers, has reported a strong financial performance for the quarter ended September 30. The company's results showcase significant growth in revenue, EBITDA, and volume, along with strategic capacity expansion plans.

Key Financial Highlights

• Revenue: ACC reported a 28% year-over-year increase in revenue.
• EBITDA: Q2 EBITDA reached ₹849.00 per metric ton, representing a 67% year-over-year increase.
• Volume Growth: The company achieved a 16% year-over-year growth in volume.
• Power Costs: Decreased by 9% from ₹6.54 to ₹5.95 per kwh, attributed to renewable energy supplies from parent company Ambuja's 1000 MW RE power project.
• Treasury Funds: Healthy treasury funds of ₹787.00 crores, increasing to ₹1500.00 crores after receiving ₹750.00 crores in tax refunds.

Strategic Developments and Capacity Expansion

• Current Capacity: ACC operates with a current capacity of 40.4 MTPA.
• Upcoming Capacity Increase: Expected to reach 43.7 MTPA with the commissioning of Salai Banwa and Kalambol plant expansion in Q3.
• Additional Capacity: Plans to unlock 5.6 MTPA through plant debottlenecking over 24 months.
• RMX Operations Expansion: Plans to expand from 116 plants across 45 cities to 365 plants by 2030, with a target capacity of 35 million cubic meters.

Financial Position

• Trade Receivables: Increased by ₹2,515.00 crores, primarily due to ₹2,000.00 crores in running bills for cement supplies to parent company Ambuja under MSA guidelines.

Market Outlook

ACC's strong Q2 performance, marked by significant revenue and EBITDA growth, along with ambitious capacity expansion plans, indicates a positive outlook for the company in the cement industry. The reduction in power costs through renewable energy adoption showcases the company's commitment to operational efficiency and sustainability.

Investor Considerations

• The substantial improvement in revenue and EBITDA reflects strong operational performance and market demand.
• Capacity expansion plans suggest potential for future growth and market share increase.
• The healthy treasury position and tax refunds strengthen the company's financial stability.
• The expansion of RMX operations indicates diversification and growth in value-added products.

Investors should note that while these developments are significant, it's important to consider broader market conditions and long-term trends in the cement industry when making investment decisions.

ACC continues to demonstrate its strategic financial management and expansion efforts in the Indian cement market. The company's Q2 results reflect both revenue growth and impressive EBITDA improvement, underscoring its ability to capitalize on market opportunities and drive operational efficiencies.