ACC’s Biggest Quarter Yet: A Journey of Growth and Sustainability
Newzdaddy Business Updates
Synopsis of the Article
- Record-Breaking Performance: ACC achieved its highest-ever quarterly revenue of ₹5,927 crore in Q3 FY’25, with a 21% YoY increase in sales volumes to 10.7 MnT.
- Remarkable Profit Growth: Profit After Tax (PAT) soared to ₹1,092 crore, marking a 103% YoY growth.
- Efficiency Milestones: Operating EBITDA at ₹1,116 crore with an 18.8% margin, the highest ever for the company.
- Sustainability Efforts: Partnered with Finland’s Coolbrook for zero-carbon heating technology and committed to Net Zero by 2050.
- Cost Optimization: Reduced logistics costs by 9%, kiln fuel costs by 10%, and improved thermal efficiency.
- Strong Financial Position: Cash reserves stood at ₹2,526 crore, with net worth at ₹17,816 crore.
- Technological Advancements: Asia’s largest SAP upgrade was completed and a new loyalty rewards platform was launched for contractors.
- Future Outlook: Cement demand is projected to grow by 4-5% in FY’25, supported by government investments in infrastructure and housing.
One of the top cement businesses in India, ACC Limited, a member of the Adani Group, reported outstanding Q3 FY’25 performance. With record-breaking sales volumes, remarkable profit growth, and an unwavering focus on sustainability, ACC continues to set standards in the cement business.
“This quarter highlights our efforts in delivering growth through increased volumes, cost optimization, and improved efficiency,” said Ajay Kapur, full-time director and CEO of ACC Ltd. We stay ahead of the curve thanks to our dedication to sustainability and innovation, which guarantees long-term profitability and value for all stakeholders.
A 21% increase in cement sales volumes to 10.7 million tonnes helped ACC reach its highest-ever quarterly revenue of ₹5,927 crore, up 21% YoY.
Premium products accounted for 32% of trade sales, further cementing market leadership, while trade sales volumes climbed by 11%.
The quarter’s profit after tax (PAT) increased by 103% year over year to ₹1,092 crore, the largest quarterly profit ever.
Focussing on operational efficiency, operating EBITDA achieved ₹1,116 crore with an 18.8% margin.
Logistics expenses decreased 9% year over year to 939/ton as a result of freight agreements and increased route efficiency.
Thanks to better coal connections and imported petcoke, kiln fuel prices decreased by 10%.
With the thermal value falling to 732 kCal, thermal efficiency increased, opening the door for more gains in the following quarters.
In terms of sustainable practices, ACC is setting the standard:
Net Zero Initiative: Under the Science-Based Targets Initiative (SBTi), ACC is one of just two cement businesses in India with verified Net Zero goals.
Renewable Energy: By starting up, a 200 MW solar project in Khavda, Gujarat, dramatically lowered electricity costs.
Eco-Friendly Products: ACC’s line of environmentally friendly products, which includes ACC Coolcrete, ACC ECOMaxX, and ACC AEROMaxX, is still growing.
Circular Economy: AFR consumption increased to 9.6% in Q3 FY’25, indicating a rise in the usage of alternative fuels.
ACC is welcoming the digital revolution:
improved operational efficiency by completing the biggest SAP update in Asia.
launched the “RewardsConnect” loyalty site, which allows contractors to easily cash incentives.
reduced invoice delays and expenses by implementing an electronic proof of delivery system.
increased brand awareness by partnering with the Gujarat Giants in the Pro Kabaddi League Season 11.
organized technical events for 6,300+ specialists and skill-building workshops for 10,300+ contractors.
the holidays with captivating commercial campaigns for Diwali and Durga Puja.
In H1 FY’25, the cement industry grew by a moderate 1.5–2%, but Q4 demand is predicted to pick up speed as a result of housing and infrastructure developments. The demand for cement is expected to increase by 4-5% in FY’25 as a result of government investments in these areas. With its strong tactics, ACC is in a good position to take advantage of these changes.
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