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• Revenue: INR7,516 crores for Q2 FY25; INR15,828 crores for H1 FY25.

• EBITDA: INR1,111 crores for Q2 FY25 with a margin of 14.8%; INR2,391 crores for H1 FY25 with a margin of 15.1%.

• EBITDA per Tonne: INR780 for Q2 FY25; INR795 for H1 FY25.

• Operational Cost: INR4,497 per tonne for Q2 FY25; INR4,467 per tonne for H1 FY25.

• Energy Cost: Declined by 10% to INR1,276 per tonne in Q2 FY25.

• Transportation Cost: Declined by 7% to INR1,282 per tonne in Q2 FY25.

• Cash and Cash Equivalents: INR10,135 crores as of September 30, 2024.

• Net Worth: Increased to INR59,916 crores as of September 30, 2024.

• Debt Status: Company remains debt-free.

• Capacity Expansion: Expected to reach 97.4 million tonnes post-acquisition of Orient Cement; targeting 140 million tonnes by FY28.

• Green Power Initiatives: Waste heat recovery capacity increased to 196 megawatts; targeting 218 megawatts by March 2025.

• Warning! GuruFocus has detected 4 Warning Signs with BOM:500410.

Release Date: October 28, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ACC Ltd (BOM:500410) reported a year-on-year revenue increase to INR7,516 crores, driven by a strong focus on micromarket management and expansion of dealer networks.

• The company remains debt-free and plans to fund its acquisition of a 46.8% stake in Orient Cement Limited through internal accruals.

• Operational costs per tonne decreased by 4%, with a notable 10% decline in energy costs due to better fuel management and increased use of green power.

• ACC Ltd (BOM:500410) has secured 70 million tonnes of new limestone reserves, supporting future production capacity expansion.

• The company is on track to increase its cement capacity to 140 million tonnes by FY28, with several projects underway to achieve this target.

Negative Points

• Despite revenue growth, the company faces a challenging pricing environment, with a year-on-year decline in cement prices impacting profitability.

• There are delays in some expansion projects due to heavy rains and other logistical challenges, potentially affecting future capacity increases.

• The integration of recent acquisitions, such as Penna, is ongoing, and the full financial impact and synergies are yet to be realized.

• The company's ambitious expansion plans require significant capital expenditure, which could strain resources if not managed effectively.

• While the company aims to reduce costs by INR500 per tonne, only 25% to 30% of this target has been achieved so far, indicating more work is needed to reach cost efficiency goals.