ACC Continues its Journey of Capacity Expansion, Cost Efficiency and Sustainability

14 Jul 2022 , 06:45 PM

Business Wire India
April – June Quarter 2022

• Ametha project to add ~5 MTPA capacity progressing as per schedule; Integrated unit to be commissioned in Q4 2022
• Waste heat recovery projects at Jamul and Kymore plants on track for commissioning in Q3 2022; Orders placed for next wave of projects at Chanda and Wadi plants
• Strong volume growth of 10.5% vs previous year during the quarter
• EBITDA at Rs. 426 Crore lower by 51% vs previous year due to significant impact of fuel cost increase despite strong efficiencies delivered under project ‘Parvat’

Consolidated Financial Results for second quarter (April-June) 2022
 

Particulars	UoM	Quarter Apr-Jun 2022	Quarter Apr-Jun 2021	Half Year Jan-Jun 2022	Half Year Jan-Jun 2021
Sales Volume – Cement	Million Tonnes	7.56	6.84	15.26	14.81
Sales Volume – Ready Mix Concrete	Million Cubic meters	0.83	0.58	1.70	1.41
Net Sales	Rs. Crore	4,393	3,810	8,715	8,024
EBITDA	Rs. Crore	426	869	1,061	1,730
EBITDA Margin	%	9.7%	22.8%	12.2%	21.6%
Operating EBIT	Rs. Crore	262	723	742	1,440
Operating EBIT Margin	%	6.0%	19.0%	8.5%	17.9%
Profit before tax	Rs. Crore	305	758	837	1,513
Profit after Tax	Rs. Crore	227	569	624	1,132

“ACC continues its journey of capacity growth with the Ametha integrated project being on track. The integrated unit at Ametha will be commissioned in Q4 2022. Land acquisition and other actions for the grinding unit project at Salai Banwa are progressing as per schedule.
 
The April to June 2022 quarter was impacted by rising global fuel costs and related inflationary impacts. We were able to mitigate part of this impact through our efficiency project ‘Parvat’. The cost reduction journey will be further accelerated with commissioning of waste heat recovery projects in Jamul, Kymore & Ametha plants taking the share of green power to 15%.
 
Sustainability continues to be one of our key focus areas. ACC is committed to making a tangible difference in the areas of carbon footprint reduction, protection of natural resources, and enabling progress and welfare of our communities through our various initiatives. I am pleased to inform that our ‘#ChangeTheStory’ campaign, which seeks to free our water bodies of plastic waste, has been widely appreciated at multiple forums.
 
I am confident that with all the projects that are underway, we will continue to deliver strongly on all our strategic priorities,” said Sridhar Balakrishnan, Managing Director and CEO.

Performance
 

• Net Sales during the quarter increased by 15% to Rs. 4,393 Crore compared to Rs. 3,810 Crore last year
• Profit after tax at Rs. 227 Crore, 60% lower vs previous year
• ‘Parvat’ journey with rigor on improvement of efficiency levers continues.
• Cash & Cash Equivalent stood at Rs. 4,517 Crore as at June 30, 2022.

Outlook

Government’s concerted efforts to stimulate investment across several sectors will have a favorable impact on improving the overall economic environment in the country. Prediction of a normal monsoon will augur well for the rural economy. We maintain a positive outlook for demand in the coming months.
 
About ACC

ACC Limited, a member of the Holcim Group, is one of India’s leading producers of cement and ready mix concrete. It has over 6,000 employees, 17 cement manufacturing sites, 82 concrete plants and a nationwide network of over 50,000 channel partners to serve its customers. With a world-class R&D centre in Mumbai, the quality of ACC’s products and services, as well as its commitment to technological development, make it a preferred brand in building materials. Established in 1936, ACC is counted among the country’s ‘Most Sustainable Companies’ and is recognised for its best practices in environment management and corporate citizenship. With sustainability at the core of its strategy, ACC is the first Indian Cement Company to sign the Net Zero Pledge with Science Based Targets. 
 
Disclaimer

This press release may contain “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and may contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should” or “will.” For us, uncertainties may arise from fluctuations in material costs, availability of limestone, demand of cement and other factors affecting the demand including those of a political, economic, business, competitive or regulatory nature. Actual future results may differ substantially or materially than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.