ACC Ltd.'s revenue rose during the second quarter ended Sept. 30 2024, showed an exchange filing on Thursday.
The Adani Group-owned cement manufacturer's topline for the quarter under review was reported at Rs 4,613.5 crore, according to an exchange filing.
ACC Q2 FY25 Results Highlights (Consolidated, YoY)
Revenue up 4.03% to Rs 4,613.5 crore versus Rs 4,434.7 crore.
Ebitda down 20.6% to Rs 436.4 crore versus Rs 549.3 crore.
Margin down 292 basis points at 9.45% versus 12.38%.
Net profit down 199.7% to Rs 387.9 crore.
Sales Volumes
ACC's consolidated sales volume grew 15% year on year to 9.3 million tonne. This marked the highest ever volume in a Q2 quarter, seen by the company in the last five years. The growth in sales volume came despite the quarter being seasonally weaker in terms of demand, due to the monsoon season. Growth was also supported by an increase in trade volumes and a 14% increase in premium product volumes.
In H1FY25, the company's volumes saw a 11% annual uptick at 19.5 million tonnes.
Impact Of Weak Environment
The downtick in the company's Ebitda was mainly on the back of the weak cement pricing environment pan-India, where cement prices across regions hit record low levels in Q2 FY25.
While margins did see some contraction, the company did get some support from a 15% reduction in their klin fuel costs—from Rs 1.85 per thousand kilocal to Rs 1.57 per thousand kilocal. The drivers of this reduction include a more optimised fuel basket, improved linkage, captive coal consumption and synergies with group companies, as per ACC.
Future Outlook
ACC states that the Indian cement industry expects improvement in demand in H2 FY25. This demand growth is likely to be driven by post monsoon pickup in construction and housing activity.
ACC highlights the government’s continued focus on infrastructure development as the key demand driver.
Sanction of additional houses under the Pradhan Mantri Awas Yojana, increase in industrial and commercial capex is expected to help grow future cement demand. ACC expects cement demand to register growth of 4-5% during fiscal 2025.
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