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ACC, an Adani Group company, has reported over four times increase in December quarter net profit at ₹537 crore against ₹113 crore on the back of lower cost and better realisation.
Income increased to ₹5,001 crore (₹4,578 crore). Overall cost was down 2 per cent at ₹4,279 crore (₹4,349 crore) on improved operational efficiency.
Recent capacity additions have taken the Adani Group’s cement capacity to 77.4 mpta. This will enable volume and revenue growth on a sustainable basis, said the company.
Operating EBITDA was up at ₹903 crore (₹379 crore), while EBITDA per tonne increased to ₹1,017 (₹496).
EBITDA margin expanded by 10 percentage points from 8.4 per cent to 18.4 per cent. Cash and cash equivalent was at ₹4,282 crore as against ₹3,634 crore in the previous quarter.
Kiln fuel cost reduced, driven by optimisation of fuel mix and higher consumption of alternative fuels.
Adding capacity
ACC had commissioned 1-mtpa cement grinding at the Ametha Integrated Cement Plant and commissioned 3.3-mtpa clinker capacity last September. In January, it acquired 55 per cent stake in Asian Concretes and Cements, which along with its subsidiary Asian Fine Cements, has 2.8-mtpa cement capacity.
In Q3, the company commissioned 16.3 MW of waste heat recovery system (WHRS) at Ametha, resulting in increase in WHRS capacity to 46.3 MW. Work on WHRS facility at Chanda (18 MW) and Wadi (21.5 MW) is on track and will be commissioned in FY25. This will take the total capacity of WHRS to 85.8 MW and account for 25 per cent of total power consumption.
The company expects cement demand in India to grow at 7-8 per cent, primarily fuelled by investments in infrastructure and large-scale residential housing projects. Opportunity buy of low-cost petcoke will help to further optimise fuel costs in the coming quarters, it said.
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