ACC, a leading cement company from Adani Group, has reported that its net profit in the December quarter more than doubled at ₹1,092 crore against ₹538 crore logged in the same period last year, largely to government incentives and write of tax provisions.

The company has received ₹720 crore as government’s holding company incentives and ₹648 crore through reversal of provision.

Revenue from operations increased seven per cent to ₹5,207 crore (₹4,855 crore). Overall expenses were up 19 per cent at ₹5,099 (₹4,279 crore).

Ajay Kapur, Whole Time Director and CEO, ACC said the company’s focus on driving growth through higher volumes, cost optimisation and enhanced efficiencies.

Leveraging innovation

With strong demand for premium cement products, the company has been leveraging innovation and sustainability to maintain our competitive edge and maximise stakeholder value, he said.

Sales volume of the company increased 21 per cent y-on-y supported by increase in trade volumes and higher premium products which accounted for 11 per cent of volumes

With use of low cost imported petcoke improved linkage and captive coal consumption and synergies with Group companies have resulted in 10 per cent reduction in Kiln fuel cost ₹1.86 to ₹1.68 per ’000 Kcal.

Thermal value reduced from 739 kCal to 732 kCal and expect further improvement in coming quarters. Logistics costs reduced nine per cent to ₹939 a tonne, driven by efficiency improvement journey (Secondary lead reducing by 3 km, direct dispatch up by 7 percentage point at 51 per cent).

EBITDA was up 19 per cent at ₹1,116 crore (₹905 crore). It had cash and cash equivalent of ₹2,526 crore.

The company has commissioned 200 MW solar power at Khavda and this will lead to reduction in power cost in upcoming quarters.

The cement sector experienced modest growth of 1.5-2 per cent during H1FY25. Looking ahead, cement demand is expected to rebound in the March quarter as construction activity accelerates in the infrastructure and housing segments.

The pro-infra and housing Budget 2025, along with increased government spending on infrastructure and construction activities, is anticipated to further support this growth. Cement demand is projected to grow in the range of 4-5 per cent in this fiscal, said the company.

Published on January 27, 2025