ACC Ltd Achieves Record Revenue in Q2 FY25
ACC Ltd, a cement unit of the Adani group, announced its financial results for the second quarter of FY25, ending September 30th. The company reported its highest revenue in five years, reaching Rs 4,614 crore, an increase from Rs 4,435 crore in the same period last year. This growth was driven by higher trade sales volume and an increase in premium product sales, which now make up 36% of total trade sales.
Despite the revenue growth, ACC Ltd faced an 8% rise in expenses, totaling Rs 4,452.73 crore, due to a Rs 123 crore increase in raw material costs. The company’s operating EBITDA decreased to Rs 436 crore from Rs 549 crore, with margins falling to 9.5% from 12.4%. Earnings per share also dropped to Rs 10.5.
Overall, the company’s volume increased by 15% year-on-year, supported by a rise in trade and premium product volumes. ACC Ltd remains optimistic about future demand, expecting cement consumption to grow by 4-5% in FY 2025, driven by infrastructure and housing projects.
CEO’s Statement
Ajay Kapur, Whole Time Director and CEO of ACC Ltd, stated, “Our performance in Q2 reinforces our standing as a frontrunner in the cement industry. Our financial results this quarter – fuelled by higher volumes, cost optimization, increasing efficiencies, and agility – build the momentum for our growth strategy for FY’25 and beyond.”
Despite these positive aspects, the company reported a 48.5% decline in consolidated net profit, amounting to Rs 200 crore, due to lower demand and near-decade-low cement prices. This is a decrease from the Rs 387.88 crore net profit reported in the same quarter of the previous fiscal year.
Doubts Revealed
ACC Ltd -: ACC Ltd is a large cement company in India. It is part of the Adani group, which is a big business group in India.
Q2 FY25 -: Q2 FY25 refers to the second quarter of the financial year 2025. In India, the financial year starts in April and ends in March, so Q2 FY25 would be from July to September 2024.
Revenue -: Revenue is the total money a company makes from selling its products or services. It is like the money you get from selling lemonade if you have a lemonade stand.
Operating EBITDA -: Operating EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a way to measure how much money a company makes from its main business activities before paying for other expenses.
Margins -: Margins refer to the difference between the cost of making a product and the price it is sold for. Higher margins mean the company makes more profit from each product sold.
Net profit -: Net profit is the money a company has left after paying all its expenses, like salaries, rent, and taxes. It is like the pocket money you have left after buying all the things you need.
Ajay Kapur -: Ajay Kapur is the CEO of ACC Ltd. A CEO is the person who is in charge of running a company and making important decisions.
Infrastructure -: Infrastructure refers to the basic physical structures needed for a society to function, like roads, bridges, and buildings. It is important for development and growth in a country.
