ACC Ltd Posts Record Revenue Amidst Profit Decline

ACC Ltd, a unit of Adani Group, recorded its highest revenue in five years at Rs 4,614 crore in Q2 FY25, driven by increased trade sales and premium products. Despite this, net profit plummeted by 48.5% due to higher expenses and declining prices, emphasizing operational challenges.

Adani Group's cement subsidiary, ACC Ltd, announced its financial results for the second quarter of the fiscal year 2025 on Thursday, highlighting a record revenue performance. The company reported a revenue from operations of Rs 4,614 crore, marking the highest in five years, compared to Rs 4,435 crore from the same period last year. This surge was attributed to an increase in trade sales volume and the sale of premium products, which accounted for 36% of total trade sales.

However, the company's operational expenses also saw an upward trend, rising by 8% to Rs 4,452.73 crore, primarily due to a Rs 123 crore increase in raw material costs. As a result, ACC Ltd's operating EBITDA fell to Rs 436 crore from Rs 549 crore, with margins decreasing to 9.5% from 12.4%. Earnings per share similarly dipped to Rs 10.5 for the quarter.

Total volume grew by 15% year-on-year, driven by trade and premium product volumes. Despite challenges, the company remains optimistic about future demand, forecasting a 4-5% growth in cement consumption for fiscal year 2025, supported by infrastructure and housing developments. CEO Ajay Kapur emphasized ACC's commitment to growth through cost optimization and sustainability, despite reporting a significant 48.5% decline in net profit due to falling demand and cement prices.

(With inputs from agencies.)