ACC (ACC) Q1 24/25 earnings summary

Executive summary

• Cement capacity increased 32% since acquisition to 89 million tons, targeting 140 million tons by FY28 through organic and inorganic growth, including Penna acquisition and 23 MTPA under execution.

• Achieved highest ever Q1 clinker and cement sales in five years, with consolidated sales volume up 3% year-over-year to 15.8 MnT.

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

• Market share stands at 14% with an internal target of 20% by FY28.

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

Financial highlights

• Q1 FY25 consolidated revenue was ₹8,311 Cr, down 5% sequentially and year-over-year, driven by micro-market management and dealer network expansion.

• EBITDA for Q1 FY25 was ₹1,280 Cr, margin at 15.4%, EBITDA per ton ₹807, and PAT at ₹790 Cr.

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

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

• Realizations per bag were lower by 7% year-over-year due to election-related and tepid demand.

Outlook and guidance

• Cement capacity to reach 100 million tons by Q2 FY26 and 140 million tons by FY28, with 4 million tons clinker and 6.4 million tons cement capacity to be commissioned in FY25.

• Cost reduction initiatives target ₹3,650 per ton by FY28.

• Green power share expected to reach 31% by FY25 and 60% by FY28.

• Full benefit of Penna acquisition expected from Q3 FY25.

• FY25 cement demand expected to grow 7%-9%, supported by government infrastructure spending.