ACC (ACC) Q2 24/25 earnings summary

Executive summary

• Achieved consolidated revenue of INR 7,516 crore for Q2 FY25, with 9% YoY volume growth and strong cost optimization; highest Q2 and H1 sales volumes in five years.

• Market share increased to 15%, targeting 20% by FY28; ongoing capacity expansion through organic and inorganic means.

• Major acquisitions include Sanghi, Penna, and a binding agreement to acquire 46.8% stake in Orient Cement, boosting capacity and market presence.

• Remains debt-free with robust cash position and high net worth, supporting future growth and acquisitions.

• Board approved unaudited results for Q2 and H1 FY25, with statutory auditor review completed.

Financial highlights

• Q2 FY25 consolidated revenue: INR 7,516 crore (+1% YoY); H1 FY25: INR 15,828 crore (-2% YoY).

• Q2 EBITDA: INR 1,111 crore (14.8% margin, INR 780/ton), down 15% YoY; Q2 PAT: INR 629 crore, down 36% YoY.

• Operational cost per ton declined 4% YoY to INR 4,497; energy cost down 10%, fuel cost down 13%, logistics cost down 7%.

• Cash and cash equivalents at INR 10,135 crore as of September 30, 2024; net worth reached INR 59,916 crore.

• Standalone and segment results show revenue and profit growth in some areas, but overall EBITDA and PAT declined YoY.

Outlook and guidance

• Cement demand expected to grow 4-5% in FY25, supported by infrastructure and housing sector investments.

• Capacity expansion on track to reach 140 million tons by FY28, with 115 million tons targeted by Q3 FY26.

• Capex and expansion plans to be funded through internal accruals; business to remain debt-free.

• Green power share expected to reach 20% by FY25 and 60% by FY28.

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