ACC (Holicim group company) is large cement player with capacity of over 34.5MT in India and one of the oldest cement player in the Industry. The company also manufactures ready-mix concrete and has 50 plants across India.
ACC has strong balance-sheet with debt free status. However, it remains laggard in terms of efficiency and operating margins vs peer companies
The ongoing capex of ₹3500 crore would increase its capacity to 39.3MT by CY22E. GU in Sindri & Tikaria already been commissioned, balance 3.2MT new capacities are progressing as per the schedule
Q1CY22 update
ACC reported mixed set of results for Q1CY22.
Revenues were up 3.1%YoY led by higher realisations (up 6.6% YoY). Sales volume were lower by 3.3% YoY to 7.71MT (I-direct est: 7.2MT).
Absolute EBITDA to ₹634.6 crore (down 26.2% YoY, up 14.1% QoQ), higher than estimated EBITDA of ₹576.9 crore due to lower RM & freightcost. Reported EBITDA/t came in at ₹823/t vs our estimated EBITDA/t of ₹735/t.
PAT of ₹396.3 crore was down 29.6% YoY. However it was higher than expected PAT of ₹344 crore for the quarter
Cement & Cement Products company ACC announced Q3FY24 results:
Key Highlights:
- The company observed an 8.3% growth in revenue which now stands at Rs 4,914 crore.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in Q3 rose by 139% to Rs 905 crore.
- Profit After Tax (PAT) had a significant increase of 375% to Rs 538 crore.
- The Earnings Per Share (EPS) saw a substantial YoY increase of Rs 22.54 reaching Rs 28.55, marking a rise from Rs 6.01 in the previous year's December quarter.
Operational Highlights:
- A 16.5% growth in sales volume for clinker and cement, up at 8.9 million tonnes.
- A reduction in kiln fuel costs by 28%, with the cost going down from Rs 2.59 to Rs 1.86 per '000 kcal.
- Increased usage of waste heat recovery system (WHRS), which now accounts for 9.1% of the total power consumption, up by 2.7 percentage points.
Working Capital and Liquidity:
- The company reported Rs 4,282 crore as cash and cash equivalents, an improvement from the previous quarter's Rs 3,634 crore.
- The working capital cycle stands at 28 days, which is competitive within the industry.
Expansion and Sustainability:
- 1 MTPA cement grinding has started at the Ametha Integrated Cement Plant.
- Total WHRS capacity augmented to 46.3 MW with the newly commissioned 16.3 MW at Ametha.
Outlook and Growth:
- Cement demand in India is expected to grow at 7-8%, with the vision of the country's economic development progressing from a USD 3.5 trillion to a USD 7.3 trillion economy by 2030.
Environmental, Social, and Governance (ESG):
- ACC focuses on a low-carbon product portfolio and aims for a five-fold water-positive status by 2030.
- The company has introduced eco-friendly products and is working on transitioning towards green power as a major energy source.
Awards and Recognition:
- ACC won multiple awards acknowledging its excellence in sustainable practices, safety, and environmental management.
Ajay Kapur, Whole Time Director & CEO of ACC, stated, "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."
ACC share price as on 29 Mar 2024 is Rs. 2491.7. Over the past 6 months, the ACC share price has increased by 23.37% and in the last one year, it has increased by 47.88%. The 52-week low for ACC share price was Rs. 1592.35 and 52-week high was Rs. 2746.4.
Company share prices and volatile and keep changing according to the market conditions. As of Mar 28, 2024 03:51 PM the closing price of ACC Ltd was ₹ 2,491.70.
Market capitalization or market cap is determined by multiplying the current market price of a company’s shares with the total number of shares outstanding. As of Mar 28, 2024 03:51 PM, the market cap of ACC Ltd stood at ₹ 46,790.89.