ACC delivers spectacular results

Operational Highlights (Q2 FY’24)

• Clinker production started at the Ametha unit.
• Clinker and cement sales volume up by 17.3% y/y at 8.1 million t.
• The operational excellence journey continues to deliver improved productivity and performance which have helped reduce operating costs and improve the bottom line.
• Kiln fuel cost was reduced by 42%, driven by fuel mix optimisation and higher alternate fuel consumptions.
• The Waste Heat Recovery System (WHRS) at Kymore & Jamul (22.4 MW) became fully operational. In addition, 16.3 MW at Ametha is expected to be commissioned by Q3 FY’24. The share of WHRS in total power consumption will increase to 9% by the end of full year 2024 as against 2.9% last Quarter.

Financial Highlights

For H1 y/y

• Revenue grew by 14% at Rs 9636 Cr.
• EBITDA up by Rs 1,041 Cr, at Rs 1607 Cr.
• EBITDA margin expanded by 9.6 pp from 6.6% to 16.2%.

For Q2 y/y

• Revenue grew by 11.2% at Rs 4,435 Cr.
• EBITDA stood at Rs 759 Cr (up by Rs 673 Cr). driven by cost savings and operational efficiency.
• EBITDA margin expanded by 14.2 pp from 2.1% to 16.3%.

Mr Ajay Kapur, Whole Time Director & CEO, ACC Limited said, “In continuation of our strong performance from the first quarter, we are pleased to announce a spectacular second quarter of FY 2023 – 24, witnessing an 11.2% y/y surge in revenue, Rs 673 Cr jump in EBITDA and improvement in PAT to Rs. 388 Cr. This commendable growth is attributed to the improved demand for our premium cement products up by 1.5 pp y/y at 32% of trade sales, net dealer addition of 534 during the quarter across all markets, coupled with our commitment to enhancing operational efficiency and prioritising environmental sustainability.

In operational efficiencies, electrical energy consumption improved by 6.4 kWh/t at 73.9 kWh/t with clinker factor improvement from 57.2% to 56.6% coupled with the reduction in kiln fuel cost from Rs.3.19 to Rs.1.85 /000 kcal.

Our commitment to enhancing logistics efficiencies has resulted in a Road Direct Despatch increase from 52% to 58% and an increase in Rail coefficient by 5pp to 34%.

One of the highlights of this quarter was the commencement of the Ametha Integrated plant in Madhya Pradesh thereby boosting our clinker capacity with an additional 3.3 MPTA, while our journey of green power through WHRS and renewable power continues and will boost our profitability apart from helping to achieve ESG targets.

We are committed to reducing our carbon footprint and it remains at the forefront of our mission. In H1 FY’24, we have reduced specific CO₂ emissions by 13 kg/t of cementitious material to 466 kg/t of cementitious material y/y. Our strategies include optimising our industry-leading green blended cement portfolio at 93% of total sales, minimising thermal and electrical energy intensity, introducing Waste Heat Recovery Systems across facilities, and a significant focus on boosting our renewable energy capacity and usage.

I firmly believe that our competitive advantage will create a path for sustained profitability within the industry. As we chart our course towards upcoming growth milestones, our strategic preparedness reaffirms our readiness to achieve promising results in the coming quarters”.

Branding

ACC has been recognised as ‘Iconic Brands of India 2023’ by The Economic Times, consecutively for the second year.

ACC also launched the impactful ‘Bharosa Atoot’ TV campaign, emphasising the company’s legacy of trust and durability. The film furthers the brand's message, taking people on the journey of ACC’s brand promise of trust and durability. Moreover, the company rolled out the ‘Desh Ban Raha hai’ campaign on the occasion of 77^th Independence Day, reaffirming its commitment to India's growth and prosperity for the future.

Alongside branding efforts, its engagement with the technical and end user community has been robust and impressive. ACC organised technical seminars and concrete talks across the nation on Engineer’s Day, drawing participation from over 6500 professionals. Through the technical services, the company is championing the cause of right and sustainable construction practices, significantly benefiting society at large.

Outlook

The cement industry is to witness volumetric growth as the demand environment remains robust on the back of increased housing and infrastructure spend. Healthy growth and demand prospects augurs well with the company’s growth ambition with leading margins.

ESG Highlights

• ACC maintains a consistent emphasis on a low carbon portfolio through the introduction of eco-friendly products and solutions.
• Boosting its WHRS capabilities and expanding renewable energy efforts.
• Target set to attain a fivefold water-positive status by 2030.
• More than 34 000 beneficiaries welcomed this quarter through its CSR programs.
• Firm commitment to water management, sustainable livelihoods, and social inclusion.
• Notable enhancements in energy efficiency led to diminished carbon emissions.

Awards

• ACC has been recognised as an ‘Iconic Brand of India 2023’ by The Economic Times; consecutively for the second year.
• The company has also been recognised as Energy Efficiency Units at the 24th National Awards for Excellence in Energy Management by CII.

Read the article online at: https://www.worldcement.com/indian-subcontinent/27102023/acc-delivers-spectacular-results/