ACC Q1 PAT Drops 22% YoY to Rs 361 Cr in FY25

ACC on Monday, July 29 reported a 22.47% decline in its consolidated net profit to Rs 361.40 crore in Q1 FY25 compared to Rs 466.14 crore posted in corresponding quarter previous fiscal.



Key Takeaways from ACC’s Financial Performance

• ACC consolidated net profit declined 22.47% to Rs 361.40 crore in Q1 FY25 compared to Rs 466.14 crore posted in corresponding quarter previous fiscal.
• Revenue from operations of the company fell slightly 0.89% on year to Rs 5,154.89 crore in Q1 FY25.
• Profit before tax (PBT) dipped 22.26% YoY to Rs 486.28 crore in Q1 FY25.
• EBITDA stood at Rs 679 crore, recording a de-growth of 4.5%.
• EBITDA margin declined 72% lower during the quarter as against 77% in Q1 FY24.

Revenue from operations of the company fell marginally 0.89% on year to Rs 5,154.89 crore in Q1 FY25.

Profit before tax (PBT) dipped 22.26% YoY to Rs 486.28 crore in Q1 FY25.

EBITDA stood at Rs 679 crore, recording a de-growth of 4.5% as against Rs 711 crore posted in the corresponding quarter last year. EBITDA margin fell as much as 72% lower during the quarter as against 77% in Q1 FY24.

Sales volume from cement and clinker segment rose to 10.2 million tonnes (MT) in Q1 FY25 from 9.4 MT in Q1 FY24, registering 9% growth, lifted by increase in premium products and improvement in efficiency parameters, ensuring market leadership.

While ready mix concentrate sales volume decreased to 0.68 million cubic metres (MCM) in Q1 FY25 from 0.76 MCM in QI FY24, the company reported that RMX business is growing steadily with profitability driven by improved efficiency parameters and optimising its footprint. 

Thermal value decreased from 757 kcal to 739 kcal, while kiln fuel cost improved from Rs 2.14 per 000 kcal to Rs 1.73 per 000 kcal with a change in fuel basket and higher consumption of alternative fuels. Additional improvement is anticipated in upcoming quarters.

On the outlook front, the cement manufacturer stated that with a stable administration and progressive policies, the Indian economy for FY'25 is predicted to rise in the range of 6.5% to 7.0%, with growth in the cement sector likely to be 7.0% to 9.0%. Budget FY 25 has an allocation of Rs 1LI1 lakh crore for infrastructure projects, which accounts for 3.4% of total GDP. Phase IV of the Pradhan Mantri Gramme Sadak Yojana (PMGSY) will be implemented, bringing all-weather connection to 25,000 rural homes. All of these steps are likely to boost cement consumption.

"ACC's performance strengthens our drive to consistently stay a frontrunner in the industry. Our performance this quarter exemplifies our efficiency and agility,” Ajay Kapur, CEO - Cement Business, Adani Group, said. “Our strategic decisions, customer-centric approach, and operational excellence continue to drive growth. As we move forward, we remain committed to delivering value to our stakeholders in a sustainable manner," Kapur added.

About ACC Limited

ACC Limited, incorporated in 1936, is an Indian cement and construction materials firm. The company manufactures and markets cement and associated materials. It works in two segments: cement and ready-mix concrete. The company makes many types of cement, including ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC), composite cement, and RMX. Its offerings include gold and silver ranges, bulk cement, solutions and products, ready mixed concrete, ready mixed concrete value-added goods, ACC ECOMaxX, and digital and customer solutions. The company's alternative building solutions include eco-friendly cement bricks, blocks and roofs for both rural and urban areas.

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