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Informist, Friday, Oct. 31, 2025

 

--ACC: Expect raw material cost to fall INR 100 per tn by 2028 

--ACC: Has adequate long-term arrangement for fly ash, other raw materials 

--ACC: Will fund ongoing capex through treasury, internal accruals 

--ACC: Cost reduction better than peers; trend to accelerate in coming qtrs 

--ACC: Further debottlenecking at existing units to add 5.6 mtpa by FY28 

--ACC Jul-Sept cement sales volume 10.0 mln tn vs 8.6 mln tn year ago 

--ACC Jul-Sept operating EBITDA per tn INR 849 vs INR 507 year ago 

--ACC Jul-Sept operating EBITDA margin 14.3% vs 9.4% year ago 

--ACC Jul-Sept operating EBITDA INR 8.46 bln vs INR 4.36 bln year ago 

--ACC Jul-Sept consol net profit INR 11.19 bln 
--Analysts saw ACC Jul-Sept consol net profit at INR 2.95 bln 
--ACC Jul-Sept consol revenue INR 58.96 bln 
--Analysts saw ACC Jul-Sept consol revenue at INR 52.40 bln 
--ACC Jul-Sept consol net profit INR 11.19 bln vs INR 2.00 bln year ago 
--ACC Jul-Sept consol revenue INR 58.96 bln vs INR 45.42 bln year ago 
--ACC saw tax write back of INR 3.56 bln in Q2 vs outgo of INR 843 mln yr ago 
--ACC Jul-Sept consol profit before tax INR 7.63 bln vs INR 2.84 bln yr ago 
--ACC Apr-Sept consol net profit INR 14.95 bln vs INR 5.59 bln year ago 
--ACC Apr-Sept consol revenue INR 119.32 bln vs INR 96.55 bln year ago 
--ACC Q2 consol cement ops revenue INR 55.19 bln vs INR 43.73 bln year 

 

By Kabir Sharma

 

MUMBAI – ACC Ltd.'s net profit for the September quarter exceeded Street's expectations by a wide margin mainly because of a write-back and surge in sales volume. The company's operating earnings before interest, taxes, depreciation, and amortisation also doubled on year, providing a significant boost to the net profit.

 

The cement maker reported a near sixfold rise in its bottom line to INR 11.19 billion, against analysts' estimate of INR 2.95 billion. Sequentially, the bottom line surged threefold from INR 3.75 billion reported a quarter ago.

 

The company benefited from a tax write-back of INR 3.56 billion in the September quarter. Other income was also boosted by the interest earned on the tax write-back. The other income rose 41% to INR 2.23 billion. During the quarter, the company reversed INR 6.58 billion that had been held as provisions for certain tax liabilities. Moreover, it got a cash refund of INR 8.28 billion, which was recorded as a tax write-back.

 

The company's operating EBITDA for the quarter surged 94% on year to INR 8.46 billion and the EBITDA margin improved to 14.3% from 9.4% a year ago. Sales volume climbed to 10 million tonnes, the highest ever recorded in the September quarter. Consolidated revenue for the quarter was INR 58.96 billion, well above analyst estimates of INR 52.4 billion.

 

The company attributed its strong performance to synergies with Ambuja Cements and associated entities such as Penna, Sanghi, and Orient, which delivered notable operational benefits. The company also said expansion at its Salai Banwa and Kalamboli units is progressing as planned and will add 3.4 million tonnes of annual capacity in Oct–Dec. Further, debottlenecking efforts are expected to unlock an extra 5.6 million tonnes of capacity by 2027-28 (Apr-Mar) at much lower capital expenditure.

 

ACC expects its operating leverage to reduce cost by at least 5%. The logistics debottlenecking initiative will improve the existing capacity utilisation by 3%, the company said.

 

Revenue from cement operations rose to INR 55.19 billion during the reporting quarter, up from INR 43.73 billion a year ago while ready-mix concrete sales increased to INR 4.54 billion from INR 2.89 billion a year ago.

 

For Apr–Sept, the company reported a net profit of INR 14.95 billion, marking a 167% on-year increase while revenue for the period grew 24% to INR 119.32 billion. The net profit without tax write-back rose to INR 7.63 billion in the September quarter, higher than INR 2.84 billion year ago.

 

In its investor presentation, the company said it has achieved higher improvement in cost reduction compared to its peers across key components such as raw materials, power and fuel, and freight, with further improvements expected in the coming quarters. The company will fund its ongoing capital expenditure through treasury and internal accruals, it said. 

 

The company has adequate long-term arrangements for supplies of fly ash and other raw-materials. It expects reduction of INR 100 per tonne in cost of raw material by 2028. On Friday, shares of ACC closed 1.2% higher at INR 1,881.50 on the National Stock Exchange.  End

 

Edited by Subhojit Sarkar

 

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