ACC Ltd., a leading name in the cement industry and a prominent part of the diversified Adani Group, has reported sustainable financial performance for Q2 FY’25, showcasing remarkable growth metrics and operational excellence. The company's achievements are a testament to its strategic focus on volume growth, cost optimization, and commitment to sustainability. In this quarter, ACC recorded a 15% year-on-year (YoY) increase in sales volume, amounting to 9.3 million tonnes, which is the highest volume reported in the Q2 series over the last five years.

The highest-ever quarterly revenue reached Rs. 4,614 Cr, reflecting a 4% increase from the previous year. This growth was primarily driven by higher trade sales volumes, which saw an uptick of 2%, alongside an increase in the proportion of premium products within trade sales, which now stands at 36% (up 3.7 percentage points YoY). ACC's operating EBITDA stood at Rs. 436 Cr, with an EBITDA margin of 9.5%.

Financial Highlights and Operational Efficiencies
In Q2 FY’25, ACC achieved several notable financial metrics. The Operating Cost was reported at Rs. 4,486 PMT, showing a significant improvement of Rs. 297 (6%) YoY. Furthermore, the company's PMT EBITDA was recorded at Rs. 469, with a margin reflecting a reduced gap compared to its peers. The Profit After Tax (PAT) for the quarter was Rs. 200 Cr, with an Earnings Per Share (EPS) of Rs. 10.5.

Moreover, ACC's cash and cash equivalents reached Rs. 2,921 Cr, contributing to an increase in net worth, which now totals Rs. 16,725 Cr. This financial robustness supports the company's growth trajectory and reflects its strong market position.

Sustainable Initiatives and ESG Commitment

ACC has placed a strong emphasis on sustainability, releasing its Sustainability Report for FY’24, which highlights its commitment to environmental, social, and governance (ESG) principles. The company aims to achieve Net Zero emissions by 2050 and has undergone validation for its targets from the Science Based Targets initiative (SBTi), positioning itself as a leader in the industry. ACC's Total Shareholder Return (TSR) was recorded at 10.2%, with a green energy usage rate of 14.1% in Q2 FY’25. In its ongoing pursuit of circular economy practices, ACC utilized over 6.4 million tonnes of waste-derived resources in the first half of FY’25.

ACC’s commitment to sustainability extends to its product offerings, with innovative solutions like ACC ECOMaxX, ACC AEROMaxX, and ACC Coolcrete being part of its eco-friendly portfolio. The company aims to plant 5.93 million trees by 2030, further enhancing its environmental stewardship.

Branding, Digitalization, and Future Outlook

In terms of branding, ACC has launched initiatives such as the #BharoseKeSaathi documentary, which highlights the success stories of contractors associated with the company. Additionally, ACC celebrated Engineer’s Day with various activities aimed at engaging its workforce and stakeholders. The company has also made strides in digitalization, implementing advanced technologies for automation and real-time order processing.

Looking ahead, the cement industry anticipates a positive demand outlook for the second half of FY 2025, driven by post-monsoon construction activities and continued government focus on infrastructure development, including roads and housing projects. The Pradhan Mantri Awas Yojana and increased capital expenditure in industrial and commercial sectors are expected to contribute significantly to future cement demand.

In conclusion, ACC’s Q2 FY’25 performance reflects its commitment to operational excellence, sustainability, and customer-centricity. As the company continues to innovate and optimize its operations, it aims to deliver sustained profitability and value for its stakeholders.

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