ACC shares trade lower by nearly 1.5% after company reports weak Q1 numbers

During Q1FY25, the company saw its operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) fall by 11.93% YoY to ₹679 crore. The operating EBITDA per metric ton was lower by 18.82% YoY to ₹664 per metric ton. Operating EBITDA margins for the quarter contracted to 13.2% compared to 14.8% in the corresponding period last year.

ACC saw its sales volume for cement and clinker business rise by 8.5% YoY to 10.2 million tonnes. Meanwhile, the sales volume for ready-mix concrete fell by 10.52% YoY to 0.68 million cubic meters. The company’s kiln fuel cost was reduced by 19% during the quarter to ₹1.73 per ‘000 kCal. The thermal value also saw a decline of 2.37% YoY to 739 kCal and is expected to improve further in the upcoming quarters.

The company stated that the cement industry accounts for 23% of India’s building material industry and has a strong correlation with the GDP. With favourable policies supporting growth and development, the cement industry is likely to grow by 7% to 9% in FY25. Additionally, schemes like Phase IV of PMGSY will provide further support to the cement industry.

Ajay Kapur, chief executive officer of Cement Business at Adani Group, stated that the company’s strategic decisions and customer-centric approach allowed them to drive forward and provide a healthy performance in the quarter.

“Our strategic decisions, customer-centric approach, and operational excellence continue to drive growth. As we move forward, we remain committed to delivering value to our stakeholders in a sustainable manner,” he said.

Shares of the company have risen by nearly 16% since the beginning of the year. The stock has lost over 29% in the past year.