Revenue from operations increased 4% YoY to Rs 4,614 crore.
The revenue growth, which was the highest in the second quarter over the last five years, was driven by higher trade sales volume and premium products as a percentage of trade sales at 36%.
“Our performance in Q2 reinforces the standing as a frontrunner in the cement industry. The financial results this quarter – fuelled by higher volumes, cost optimization, increasing efficiencies, and agility – build the momentum for our growth strategy for FY’25 and beyond,” said Ajay Kapur, Whole Time Director & CEO, ACC.
Operationally, the sales volume (clinker and cement) recorded a growth of 15% YoY at 9.3 million tons, supported by an increase in trade volumes and higher premium product volumes.
Optimised fuel basket, improved linkage and captive coal consumption and synergies with Group companies have resulted in 15% reduction in Kiln fuel cost.Thermal value during the second quarter reduced from 768 kCal to 735 kCal as the company expects further improvement in coming quarters.The company has clocked an operating EBITDA of Rs 436 crore during the second quarter, while the EBITDA margin stood at 9.5% in the same period.
ACC said the industry is expecting an improvement in demand in H2 FY25, which is likely to be driven by post-monsoon pickup in construction and housing activity.
“Sanction of additional houses under the Pradhan Mantri Awas Yojana (Rural & Urban) along with increase in industrial and commercial capex is expected to meaningfully create future cement demand. We expect cement demand to register growth of 4-5% during FY 2025,” it said.
On Thursday, ACC shares were trading nearly 1% higher at Rs 2,279 on NSE.