On October 26, 2023, ACC Ltd. (BSE, NSE: ACC) announced its Q2 2023-24 financial results, with nothing short of spectacular results for Q2. With the EBITDA for half the year up and the PAT high too, ACC is on the road to potential success.
Table of Content
Important Q2 Operational Highlights
ACC Ltd has declared superior results for half of FY 23-24, but here are the operational quarterly highlights first (Q2):
- At the Ametha Unit, clinker production has commenced.
- Cement and clinker sales Volume is up by a phenomenal 17.3% YoY @ 8.1 MioT.
- In terms of operational excellence, ACC continues to be on the right track and delivers enhanced performance as well as productivity, helping to reduce operating expenses and improving the bottom line.
- The kiln fuel cost has been reduced by 42%, and this is due to high alternate fuel consumption and fuel blend optimisation.
- At Jamul and Kymore (22.4 MW), the Waste Heat Recovery System has become completely operational. Additionally, by Q3, 16.3 MW at Ametha is estimated to be operational. In the total consumption of power, the share of WHRS will likely go up to 9% at the close of FY 23-24 relative to 2.9% in the previous quarter.
Relevant Q2 Financial Highlights Of ACC Ltd
Here are some important financial highlights for Q2 FY 23-24:
- For Q2, on a YoY basis, the Revenue has grown to ₹4,435 crore, a growth of 11.2%.
- For Q2 YoY, EBITDA stands at ₹759 crore (a rise of ₹673 crore) due to operational efficiency and savings in costs.
- EBITDA margin went up by 14.2 pp, a rise from 2.1% to 16.3% for Q2 YoY.
Also Read: Acc Share Price
Prominent Half-Yearly Highlights
ACC Ltd has delivered excellent half-yearly results, the highlights of which are displayed below:
- The company’s sales volume has grown by 20.2% YoY @ 17.5 MioT.
- On a YoY basis, EBITDA has significantly jumped from ₹566 crore to ₹1,607 crore.
- On a YoY level, PAT has substantially increased from ₹140 crore to ₹854 crore.
- The Cash and Cash Equivalent is at ₹3,634 crore at the close of Q2, a rise of ₹538 crore.
Comments from the Management
The CEO and Whole Time Director of ACC, Ajay Kapur, had some insights about the Q2 results, and these are indicated below:
- The strong performance of the second quarter of FY 23-24 has been continued from the first quarter.
- Key metrics like Revenue, PAT, and EBITDA have substantially improved.
- The growth witnessed in Q2 is commendable and can be attributed to enhanced demand for the company’s superior cement products which is up by 1.5pp YoY @ 32% trade sales as well as the Net Dealer addition of 534 spanning all markets. This success cannot be separated from the company’s commitment to sustainability and its promise of boosting operational efficiency.
- In terms of the operational efficiency of the company, the consumption of electrical energy has improved by 6.4 kWh/t @ 73.9 kWh/t with an improvement in clinker factors from 57.2% to 56.6% along with a decrease in Kiln fuel costs from ₹3.19 to ₹1.85/000 kcal.
- Due to the commitment to boost logistics, there is also a significant Road Despatch increase.
- One of the key takeaways of Q2 is the start of operations at the Ametha plant of ACC, crucially enhancing the clinker capacity.
- The company is committed to the reduction of its carbon footprint and it has importantly decreased emissions this Q2. It is also ardently working towards the achievement of using more renewable energy and reducing electrical and thermal power intensity.
- All the success of Q2 will go a long way in facilitating future progress and growth of ACC, as the cement industry’s outlook is one of major growth with strong demand due to the housing and infrastructure markets expanding.
ACC Ltd – Remarkable Recognition
Here are some of the recognitions and awards that the company has achieved:
- ACC has been acknowledged as the “Iconic Brand of India (2023)” by the Economic Times, for the second consecutive year.
- The 24th National Awards for Excellence in Energy Management (CII) has recognised ACC for its Energy Efficiency Units.
Financial Results – Half-Yearly and Q2
The financial results are highlighted in the table below:
| Metrics | UoM | Q2 FY 23-24 | Q2 FY 22-23 | H1 FY 23-24 | H1 FY 22-23 |
| Sales and Volume (Cement and Clinker) | Mn T | 8.1 | 6.9 | 17.5 | 14.6 |
| Net Revenue | ₹ crore | 4,435 | 3,987 | 9,636 | 8,456 |
| EBITDA | ₹ crore | 759 | 86 | 1,607 | 566 |
| EBITDA Margin | % | 16.3% | 2.1% | 16.2% | 6.6% |
| Profit After Tax | ₹ crore | 388 | (87) | 854 | 140 |
About ACC Ltd.
Formerly, The Associated Cement Companies Limited, ACC Limited, an Indian cement producer, with headquarters in Mumbai, is now a subsidiary of Ambuja Cements, within the Adani Group of Companies. On 1 September 2006, The Associated Cement Companies Limited changed to ACC Limited. The company was originally incorporated in Mumbai, Maharashtra, on 1 August 1936.
ACC or ACC Limited is a leader in the industry of Indian building materials, boasting a long-standing pan-India functional and marketing presence. A substantial company under the helm of the Adani Group, ACC has a reputation that precedes itself. The company is one of the largest in the cement and other materials business and a pioneer enterprise that has constantly set high standards due to its innovative product development through R&D processing. With expertise extending over 8 decades, ACC has very actively been a key player in India’s infrastructure progress.
Headquartered in Ahmedabad, Gujarat, India, its parent, Adani, is the fastest-growing and largest group of diversified businesses in the Indian economy, with interests in Resources, Logistics (seaports, airports, logistics, shipping, and rail), Power Generation/Distribution, Agro Products, Renewable Energy, Gas and Infrastructure, Real Estate, Aerospace, Defence, Transport and Infrastructure and more. Being part of this conglomerate makes ACC a key player in the growth of its own business and the sector at large.
Source:
https://www.acclimited.com/investor-relations/financial-quarterly-results
