Adani Group's cement maker ACC sees massive 103% surge in profit driven by record sales

ACC Limited, a key cement and building materials company under the Adani Group, has reported a massive jump in its net profit, with the latter rising by a whopping 103% year-on-year to ₹1,092 crore in Q3 FY25. This is more than double of what it saw in the corresponding quarter last year, which was at ₹538 crore.

The cement maker, considered India's second-largest, also said that its consolidated revenue from operations rose marginally by 7.25 per cent at ₹5,207.29 crore from ₹4,855.22 crore YoY. Sequentially, revenue grew by 15% from Rs 4,521.29 crore.

This performance, according to the company, was driven by a 21% YoY rise in cement and clinker sales volumes, reaching 10.7 million tonnes, the highest for any quarter in the company’s history.

Ajay Kapur, Whole Time Director and CEO, attributed the robust results to strategic cost optimisation, efficiency enhancements, and growing demand for premium cement products. “Our Q3 results demonstrate our focus on driving growth through higher volumes, cost efficiencies, and innovation. We remain committed to sustainability and maximising stakeholder value,” Kapur said.

Operating EBITDA increased to ₹1,116 crore, with margins improving slightly to 18.8% from 18.4% last year.

According to the company, cost efficiencies were a key driver of this growth. ACC, which is regarded as the second-largest cement maker in India, reduced kiln fuel costs by 10% and logistics expenses by 9% year-on-year, while optimising its fuel basket with low-cost imported petcoke and leveraging synergies with Adani Group companies. Additionally, green power usage increased to 18.7% of total power consumption, reflecting ACC’s commitment to sustainability.

For the nine-month period ending December 31, 2024, the company recorded a revenue of ₹15,696 crore, a 7.9% increase from the previous year, with cumulative sales volumes rising 15% to 30.3 million tonnes.

Looking ahead, ACC expects cement demand to rebound in Q4 FY25, supported by infrastructure and housing sector growth spurred by increased government spending. Cement demand for FY25 is projected to grow by 4-5%.