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
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 Q1FY24 results:
Net Revenue up 16.4% YoY at Rs 5,201 crore
Volume up by 23.2% YoY, at 9.4 MioT
EBITDA on YoY basis jumped by 77% from Rs 480 crore to Rs 848 crore
PAT rose to Rs 466 crore as compared to Rs 227 crore last year
Cash & Cash equivalent stands at Rs 3,226 crore at the end of the quarter
Ajay Kapur, Whole Time Director & CEO, ACC said, “We are delighted to report a strong performance in the first quarter of FY24, with a 16.4% increase in revenue and 105% increase in PAT compared to the previous year's same quarter. The growth was driven by robust demand for high-quality cement products across all markets, as well as our continuous efforts to optimize operations and reduce environmental impact. As we are committed to delivering the best for every stakeholder, we are proud to be ranked No.2 in India’s Most Trusted Cement Brands 2023' by TRA. We thank our customers, partners, employees, and shareholders for their trust and support, and we look forward to building on this momentum for the rest of the year.
Sustainability has been a fundamental tenet of operational and growth planning, woven seamlessly into all our endeavoRs We are proud to be recognised among ‘India’s Top 50 Most Sustainable Companies' crore loss Sector by BW Businessworld while winning several other awards and accolades for our outstanding work. We have persistently strived to diminish our carbon footprint by reducing the clinker factor, curbing thermal and electrical energy intensity, implementing Waste Heat Recovery Systems across facilities, and augmenting usage and capacity for renewable energy generation.
We started this financial year with a campaign highlighting the aspect of Building India since 1936 through ACC's Suraksha film. With cricket being something that our target audience strongly associates with, we capitalized on India v/s Australia World Test Championship through our advertisements during the series. Through our Technical Services, we are enabling an ecosystem of right and sustainable construction practices for the larger benefit of society.
Our long-term competitiveness remains robust, ensuring industry-leading profitability even as we chase our ambitious growth goals. With a firm belief in strategic approach, we are poised to continue our trajectory of outstanding performance in the forthcoming quarters”
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 Sep 26, 2023 09:54 AM, the market cap of ACC Ltd stood at ₹ 37,903.87.