How Did Adani’s ACC Limited Achieve an Impressive 460% Net Profit Growth in Q2?
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Synopsis
ACC Limited, a vital segment of the Adani Group, has achieved a historic profit leap of 460% in Q2, driven by strategic investments and market reforms. With record volumes and a solid financial foundation, the company is set for continued growth in the cement industry. Discover how ACC is reshaping its future amidst challenges.
Key Takeaways
- 460% profit growth in Q2.
- Highest volume of 10 million tonnes.
- Revenue increased by 28% to Rs 5,932 crore.
- Debt-free status with Crisil AAA rating.
- Positive outlook for FY26 driven by strategic investments.
Ahmedabad, Oct 31 (NationPress) ACC Limited, a key player within the extensive Adani Portfolio, showcased a remarkable performance on Friday, reporting a staggering 460% growth in profit after tax (PAT), amounting to Rs 1,119 crore, along with its highest-ever volume of 10 million tonnes, marking a 16% increase.
The rapidly growing company in the building materials sector recorded a revenue of Rs 5,932 crore for the quarter, reflecting a 28% rise, the highest in the Q2 series.
“This quarter has been pivotal for the cement industry. In spite of the hurdles posed by extended monsoon rains, the sector is poised to benefit from numerous positive changes, including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the elimination of the coal cess,” stated Vinod Bahety, Whole-Time Director and CEO of ACC Limited.
“These advancements will promote a stable demand trajectory moving forward. Projects like Salai Banwa and Kalamboli are set to add 3.4 million tonnes per annum (MTPA) this year. Additionally, plant debottlenecking will increase capacity by 5.6 MTPA, while logistics enhancements will improve operational efficiency,” he added.
The company's net worth surged by Rs 1,151 crore this quarter, bringing it to Rs 19,937 crore. ACC maintains a debt-free status, holding the highest rating of Crisil AAA (Stable)/Crisil A1+.
Bahety remarked that as part of the broader Adani Cement family and under the guidance of Ambuja Cements, ACC benefits from the Group’s integrated ecosystem encompassing logistics, renewable energy, and innovation.
“Strategic investments by Ambuja in this ecosystem are further aiding ACC’s growth, cost efficiency, and transformation. The forthcoming clinker capacities of Ambuja—30 MTPA and 1,000 MW of renewable energy—will also be accessible to ACC under the MSA, sustaining its growth trajectory. The outlook for the remainder of FY26 is optimistic, driven by cost efficiency, premiumization, and digitization,” he elaborated.
The company noted that GST reforms leading to lower cement prices have made Adani Cement’s premium products more appealing to potential customers.
Together with its parent company, ACC is striving for cost leadership, aiming to achieve Rs 3,650/MT by FY28.
Point of View
We recognize ACC Limited's impressive growth as a testament to strategic planning and adaptability. The company's performance reflects broader trends within the cement sector and showcases the importance of innovation and sustainability, positioning ACC as a leader in the industry.
NationPress
01/11/2025
Frequently Asked Questions
What was ACC Limited's profit growth in Q2?
ACC Limited reported a remarkable 460% profit growth in Q2, reaching Rs 1,119 crore.
How much cement volume did ACC achieve?
ACC achieved its highest-ever volume of 10 million tonnes, marking a 16% increase.
What factors contributed to ACC's success in Q2?
Factors such as GST reforms, strategic investments, and market conditions contributed to ACC's success.
Is ACC Limited debt-free?
Yes, ACC Limited remains debt-free and holds a top rating of Crisil AAA (Stable)/Crisil A1+.
What are the future prospects for ACC Limited?
The outlook for ACC Limited remains positive, driven by cost efficiency, premiumization, and digitization strategies.
