In This Article:
-
Revenue: INR9,329 crores for Q3 FY25.
-
EBITDA: INR1,712 crores with a margin of 18.4% for Q3 FY25.
-
EBITDA per Tonne: INR1,048 for Q3 FY25.
-
Operational Costs: INR4,618 per tonne for Q3 FY25.
-
Energy Costs: Reduced by 7% due to better fuel management.
-
Transportation Costs: Declined by 6% to INR1,239 per tonne.
-
Cash and Cash Equivalents: INR8,755 crores as of December 31.
-
Net Worth: Approximately INR63,000 crores.
-
Ready-Mix Plants: Reached 100 with eight new plants commissioned in Q3 FY25.
-
Limestone Reserves: 631 million tonnes secured in Q3 FY25.
-
Green Power Share: Increased to 21.5% from 15.8%.
-
Lead Distance: Reduced by 4 kilometers to 85 kilometers.
-
Direct Dispatch: Increased by 700 bps to 57%.
Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
ACC Ltd (BOM:500410) achieved a revenue of INR9,329 crores, driven by strong focus on micro market management strategy and expansion of dealer network.
-
Operational costs for the quarter decreased due to a 7% decline in energy costs, attributed to better fuel management and increased use of green power.
-
The company commissioned a 200-megawatt solar power project in Gujarat and secured 631 million tonnes of new limestone reserves.
-
ACC Ltd (BOM:500410) plans to expand its cement capacity to 140 million tonnes by FY28, with several new facilities and expansions underway.
-
The company is making significant progress in its ESG commitments, aiming for net zero by 2050 and increasing the share of green power in its operations.
Negative Points
-
EBITDA per tonne was reported at INR1,048, with concerns raised about the operational performance and cost structures of newly acquired assets.
-
The company faced higher costs due to shutdowns for maintenance and retrofitting at several plants, impacting overall performance.
-
Realization per tonne decreased sequentially, with challenges in maintaining premium pricing amidst market conditions.
-
The integration of newly acquired assets like Penna and Sanghi is still in progress, with current utilization levels below optimal.
-
There is a significant increase in other expenses, partly due to consolidation of new acquisitions and higher consumption of stores and spares.
Q & A Highlights
Q: Why has the operating performance dropped significantly this quarter, especially in terms of EBITDA per tonne? A: Ajay Kapur, CEO: The volume growth was strong at 16.7%, but the inclusion of Penna and Sanghi volumes, which have higher cost structures, impacted overall costs. Additionally, several plants were under maintenance, affecting inventory and costs. We expect improvements as these assets ramp up to higher utilization levels next year.