ACC Cement Posts Rs 538 Crore Net Profit, Up 375% Year-On-Year

Cement maker ACC, which is one of the largest cement and building makers in India, today reported a "robust" third financial quarter ending December (Q3) in the financial year 2023-2024. 

ACC Cement, which is a part of the Adani Group, said the profit after tax (PAT) rose 375 per cent year-on-year at Rs 538 crore and the operating EBITDA, a metric used by companies to measure performance, was up 139 per cent at Rs 905 crore and their EBITDA margin of 18.4 per cent is highest in last six quarters. 

"ACC's financial performance has seen a complete turnaround in the last 12 months. Recent capacity additions have taken the Adani Group's cement capacity to 77.4 MPTA. This will enable volume and revenue growth on a sustainable basis," Ajay Kapur, Whole Time Director & CEO, ACC Limited said.

The company has achieved significant improvements in all financial matrices.  Revenue has grown 8.3 per cent, Operating EBITDA (excluding other income) has grown 139 per cent, and EBITDA margin expanded by 10 pp from 8.4 per cent to 18.4 per cent. 

Cash & Cash equivalent at Rs. 4,282 crore is an improvement over the previous quarter (Rs. 3,634 crore). The Company's consolidated net worth has improved by Rs.538 crore and stands at Rs 15,361 crore. Working capital is amongst the best in comparison with peers and stands at 28 days cycle.

The company in its outlook said the Cement demand in India will continue to grow at 7-8%, primarily fuelled by investments in infrastructure and large-scale residential housing projects. This growth aligns strategically with the broader economic development goals of the country. 

The opportunity to buy low-cost petcoke will help to further optimise fuel costs in the coming quarters and will augur well in our cost optimisation journey.

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