ACC Q3 Profit Surges to Rs 1,091.8 cr, Revenue at Rs 5,207.3 cr

New Delhi, Jan 27 (PTI) Cement maker ACC Ltd on Monday reported a net profit of Rs 1,091.8 crore for the third quarter ended December 2024.

The company had posted a profit of Rs 537.67 crore in the October-December quarter a year ago, according to a regulatory filing from ACC, now a part of Adani Cement.

Its revenue from operations was at Rs 5,207.3 crore during the quarter under review. It was at Rs 4,855.22 crore in the corresponding period a year ago.

ACC's results are not comparable as it had acquired the remaining 55 per cent of the Asian Concretes and Cements (ACCPL) along with its step-down wholly-owned subsidiary Asian Fine Cements. The consolidated financial results for the current quarter include the consolidated financial results of ACCPL.

"Accordingly, the consolidated financial results for the quarter and nine months ended December 31, 2024, are not comparable with quarter and nine months ended December 31, 2023, to that extent," it said.

During the quarter, ACC received a refund of Rs 720.09 crore from the government as an incentive in the form of exemption of excise duty on captive consumption of clinker for the period from May 2005 to February 2013.

Earlier the excise authorities, in Shimla had denied the above exemption, however, the Customs, Excise and Service Tax Appellate Tribunal ruled in ACC's holding company's favour.

Based on the refund order Rs 636.86 crore is recognised as income during the quarter and nine months ended December 31, 2024, it added.

ACC's total expenses in the December quarter were at Rs 5,099.44 crore.

The total income of ACC in the December quarter was Rs 6,575.62 crore. Its revenue from the Cement business was at Rs 5,614.17 crore and Rs 344.50 crore from the Ready Mix Concrete business.

"The performance comes on the back of volume growth, cost optimisation and improved efficiency parameters," said ACC.

Commenting over the results, Whole Time Director & CEO Ajay Kapur said Q3 results demonstrate a strategic focus on driving growth through higher volumes, cost optimisation, and enhanced efficiencies.

"With strong demand for our premium cement products and our commitment to excellence on all parameters in line with our ESG leadership, we are leveraging innovation and sustainability to maintain our competitive edge and maximise stakeholder value. We are well-poised to achieve sustained profitability and capitalise on our strategic vision set forth for our business,” he said.

Over the outlook, the company said though the cement sector experienced modest growth of 1.5-2 per cent during H1 FY25, however, it is expected to "rebound" in Q4 FY25 as construction activity accelerates in the infrastructure and housing segments.

"The pro-infra and housing Budget 2025, along with increased government spending on infrastructure and construction activities, is anticipated to further support this growth. Cement demand is projected to grow in the range of 4-5 per cent for FY25," said ACC.

Shares of ACC on Monday were trading at Rs 2,036.05 a piece on the BSE, down 1.05 per cent from the previous close.