ACC (ACC) Q1 24/25 earnings summary

Executive summary

• Cement capacity increased to 89 million tons, with a 32% rise since acquisition, targeting 140 million tons by FY28 through organic and inorganic growth; consolidated sales volume up 3% YoY to 15.8 MnT.

• Market share stands at 14%, aiming for 20% by FY28, supported by ongoing Penna acquisition and expansion projects.

• Net worth reached ₹59,465 Cr, company remains debt-free with cash and cash equivalents of ₹18,299 Cr.

• Focus on cost leadership, efficiency, and sustainability, with significant investments in green power and waste heat recovery.

• Board approved unaudited financial results for Q1 FY25, with no material misstatements noted.

Financial highlights

• Q1 FY25 consolidated revenue was ₹8,311 Cr, down 5% sequentially and YoY; standalone revenue was ₹5,155.56 Cr.

• EBITDA for Q1 FY25 was ₹1,280 Cr, margin at 15.4%, EBITDA per ton at ₹807.

• PAT for Q1 FY25 was ₹790 Cr; standalone net profit was ₹366.23 Cr.

• Cost per ton declined 3% to ₹4,437, with energy costs down 13% and transportation costs down 8%.

• Consolidated cash and cash equivalents stood at ₹18,299 Cr as of June 30, 2024.

Outlook and guidance

• Capacity to reach 100 million tons by Q2 FY26 and 140 million tons by FY28, with all expansion funded by internal accruals and operating cash flows.

• Remain debt-free during expansion; full integration of Penna expected to contribute from Q2 FY25.

• Targeting cost optimization of 8%-10% through capex and operational initiatives; cost reduction target of ₹3,650 PMT by 2028.

• Green power (1,000 MW) to be commissioned by Q1 FY26, aiming for 60% power from renewables by FY28.

• No material consequences from regulatory or legal proceedings as of June 30, 2024.