 "ACC Q3FY25 results: Profit skyrockets 103% to Rs 1,092 cr, revenue up 7%")
Adani Group-owned cement maker ACC Ltd on Monday reported 103 per cent rise in its consolidated net profit at Rs 1,091.73 crore for the third quarter (Q3) of the financial year 2024-25 (FY25). This is more than double the net profit reported by the company during the same period last year at Rs 537.63 crore. The company attributed this sharp rise to higher volumes, cost optimisation measures, and improved operational efficiency.
Sequentially, the cement-maker's profit was even more impressive, growing by 447 per cent from Rs 199.66 crore.
Consolidated revenue from operations rose marginally by 7.25 per cent at Rs 5,207.29 crore from Rs 4,855.22 crore year-on-year (Y-o-Y). Sequentially, revenue grew by 15 per cent from Rs 4,521.29 crore.
Earnings before interest, taxes, depreciation, and amortisation (Ebitda) also rose 23.4 per cent year-on-year to Rs 1,115.7 crore, up from Rs 904.3 crore in the corresponding quarter of FY24. Ebitda margins saw a slight improvement, climbing to 18.8 per cent from 18.4 per cent a year earlier.
Highest ever Q3 revenue in five years
ACC reported its highest-ever revenue in five years for the October–December quarter, achieving Rs 5,927.3 crore (standalone) in Q3 FY25, the company said in an exchange filing following the release of its financial results. This marks a 20.6 per cent increase from Rs 4,914 crore in the same period last year. ALSO READ: Indian Oil Q3 results: Net profit drops 77% to Rs 2,115 cr, revenue down 5%
The growth was driven by an 11 per cent rise in trade sales volumes and an increase in premium products, which constituted 32 per cent of trade sales. This revenue performance is the highest for the company in the Q3 series over the past five years.
The firm highlighted reductions in key cost areas. Logistics costs fell by 9 per cent to Rs 939 per tonne due to enhanced efficiencies, while kiln fuel costs were reduced by 10 per cent, falling from Rs 1.86 to Rs 1.68 per '000 Kcal. This was achieved through the optimisation of its fuel mix, including greater use of low-cost imported petcoke, captive coal, and synergies with Adani Group companies.
ACC reported a 21 per cent Y-o-Y growth in sales volumes, supported by increased trade and premium product volumes, reinforcing its market leadership. The company also closed the quarter with a cash and cash equivalent balance of Rs 2,526 crore, while its net worth reached an all-time high of Rs 17,816 crore, up Rs 1,091 crore during the quarter.
Sector-wise growth
The cement industry recorded moderate growth of 1.5–2 per cent in the first half of FY25, according to ACC. However, the company expects demand to rebound in Q4 FY25, driven by accelerated construction in the infrastructure and housing sectors. ALSO READ: Adani Total Gas Q3 results: Profit drops 19% to Rs 142 cr, revenue up 13%
The company expressed optimism about the impact of India’s Budget 2025, which prioritises infrastructure and housing. It anticipates cement demand to grow by 4–5 per cent for FY25 as government spending on construction activities rises.
Commenting on the results, Whole Time Director and CEO Ajay Kapur said, “Our Q3 results demonstrate our strategic focus on driving growth through higher volumes, cost optimisation, and enhanced efficiencies. With strong demand for our premium cement products, and our commitment to excellence on all parameters in line with our ESG leadership, we are leveraging innovation and sustainability to maintain our competitive edge and maximise stakeholder value. We are well-poised to achieve sustained profitability and capitalise on our strategic vision set forth for our business.”
Shares of ACC Ltd were trading at Rs 1,996.25 on the BSE a 3:30 pm, down nearly 3 per cent after the Q3FY25 financial results were released.