ACC Limited, one of India’s leading cement producers, has announced a remarkable 21% year-on-year (YoY) growth in cement sales volume for the third quarter of fiscal year 2025. This surge has resulted in a record-breaking 10.7 million metric tons (MnT) of cement sold, the highest ever volume recorded in a single quarter. The company attributes this growth to a combination of increased trade volumes and a rise in demand for premium cement products. This strong performance comes alongside a 21% YoY increase in quarterly revenue, reaching Rs. 5,927 crore, and a record operating EBITDA of Rs. 1,116 crore with an 18.8% margin.
ACC’s impressive performance is further highlighted by:
- Highest ever quarterly revenue: Rs. 5,927 crore in Q3, marking a significant milestone for the company.
- Strong operating EBITDA: Rs. 1,116 crore, demonstrating efficient cost management and operational excellence.
- Record PAT: Profit after tax reached Rs. 1,092 crore, up by an impressive 103% YoY.
- Healthy cash flow: Cash and cash equivalents stand at Rs. 2,526 crore, reflecting a strong financial position.
Key Insights:
- Demand Growth: The robust volume growth indicates a strong underlying demand for cement in the Indian market, likely driven by increased infrastructure spending and construction activity.
- Premiumization Trend: The increase in premium product sales suggests a shift in consumer preferences towards higher-quality cement, which could contribute to improved profitability for ACC.
- Operational Efficiency: ACC’s strong EBITDA margin reflects successful cost optimization measures and efficient operations.
- Positive Outlook: The company’s record-breaking performance and strong financial position suggest a positive outlook for the remainder of FY25.
Investment Implications:
- Positive Signal for ACC: This news is likely to be viewed positively by investors, potentially leading to an increase in ACC’s stock price.
- Sectoral Impact: The strong performance could have a positive ripple effect on other companies in the cement and building materials sector.
- Economic Indicator: The robust cement demand aligns with broader indicators of economic growth in India, particularly in the construction and infrastructure sectors.
- Investor Action: Investors may consider ACC as a potential investment opportunity, but should conduct further research and consider their own risk tolerance and investment goals.
