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.

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...."