Q2 2025 ACC Ltd Earnings Call Transcript
Key Points
- ACC Ltd (BOM:500410) reported a year-on-year revenue increase to INR7,516 crores, driven by a strong focus on micromarket management and expansion of dealer networks.
- The company remains debt-free and plans to fund its acquisition of a 46.8% stake in Orient Cement Limited through internal accruals.
- Operational costs per tonne decreased by 4%, with a notable 10% decline in energy costs due to better fuel management and increased use of green power.
- ACC Ltd (BOM:500410) has secured 70 million tonnes of new limestone reserves, supporting future production capacity expansion.
- The company is on track to increase its cement capacity to 140 million tonnes by FY28, with several projects underway to achieve this target.
- Despite revenue growth, the company faces a challenging pricing environment, with a year-on-year decline in cement prices impacting profitability.
- There are delays in some expansion projects due to heavy rains and other logistical challenges, potentially affecting future capacity increases.
- The integration of recent acquisitions, such as Penna, is ongoing, and the full financial impact and synergies are yet to be realized.
- The company's ambitious expansion plans require significant capital expenditure, which could strain resources if not managed effectively.
- While the company aims to reduce costs by INR500 per tonne, only 25% to 30% of this target has been achieved so far, indicating more work is needed to reach cost efficiency goals.
Ladies and gentlemen, good day, and welcome to Ambuja Cements Limited Q2 FY25 earnings conference call hosted by Motilal Oswal Financial Services Limited.
(Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjeev Kumar Singh from Motilal Oswal Financial Services Limited. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone, and thank you for joining the call. Without much delay, I will transfer the call to Mr. Deepak Balwani, Head of Investor Relations.
Mr. Deepak, over to you.
Yeah, thank you, Sanjeev. Wishing all a very happy and a prosperous Diwali. It is my pleasure to welcome you all to Ambuja's second-quarter FY25 earnings call.
Ambuja Cements Limited is one of India's leading cement companies and a member of the diversified Adani Group, the largest
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