The shares of one of the largest cement companies in India are in focus after its Net profits more than doubled in Q3FY25 supported by the highest-ever volume and revenue growth in a quarter.
Share Price Movement
The shares of ACC Ltd with a market capitalization of Rs 37,332.11 Crores, were trading around Rs 2,028, which is 1.6% up from its previous close of Rs 1995 per share as of Tuesday afternoon.
Q3FY25 Results
ACC Ltd’s net profits skyrocketed by 103%, the highest ever PAT, from Rs 538 Cr in Q3FY24 to Rs 1,092 Cr in Q3FY25. Quarterly, net profits rose by 446%, from Rs 200 Crores in Q2FY25.
Meanwhile, its revenue from operations rose by 21% from Rs 4,914 Cr in Q3FY24 to Rs 5,927 Cr in Q3FY25 as per the media release report on 27th January, marking its highest-ever revenue in Q3 Series over the last 5 years. Quarterly, revenue grew by 15% from Rs 4,521 Crores in Q2FY25.
Operating EBITDA grew by 23% from Rs 905 Cr in Q3FY24 to Rs. 1,116 Cr in Q3FY25 with an EBITDA margin of 18.8% and EPS (Diluted) at Rs. 58.0 during the quarter.
Cash & Cash equivalent stood at Rs. 2,526 Cr as of Q3FY25, with the highest ever Net Worth at Rs. 17,816 Cr, up by Rs. 1,091 Cr during the current quarter.
Volume increased by 21% YoY supported by an increase in trade volumes and higher premium product volumes (11% YoY), ensuring market leadership.
Sales Volume for Cement and Clinker grew from 8.9 Million Tonnes in Q3FY24 to 10.7 Million Tonnes in Q3 FY25, and Sales Volume for Ready Mix Concrete grew from 0.66 to 0.71 Million M^3 over the same period.
Management Commentary
Mr. Ajay Kapur, Whole Time Director & CEO, ACC Ltd, said, “Our Q3 results demonstrate our strategic focus on driving growth through higher volumes, cost optimization, and enhanced efficiencies. With strong demand for our premium cement products and our commitment to excellence on all parameters aligned with our ESG leadership, we are leveraging innovation and sustainability to maintain our competitive edge and maximize stakeholder value. We are well-poised to achieve sustained profitability and capitalize on our strategic vision set forth for our business.”
Future Outlook
The cement sector saw modest growth of 1.5-2% in H1 FY’25. Demand is expected to rise in Q4 FY’25 as construction activity increases in infrastructure and housing. The pro-infra and housing Budget 2025 and higher government spending are expected to boost growth, with cement demand projected to grow 4-5% for FY25.
Brokerage Ratings
After the company’s Q3FY25 results, global brokerage firm CLSA has maintained its ‘Outperform’ rating on the stock, setting a target price of Rs 2,580 per share. Meanwhile, Japanese firm Nomura has kept its ‘Reduce’ rating with a target price of Rs 1,920 per share.
About ACC Ltd
ACC Limited established in 1936, a subsidiary of Ambuja Cements, is one of India’s leading producers of cement and ready-mix concrete. It is a member of the diversified Adani Group – the largest and fastest-growing portfolio of diversified sustainable businesses. It has 20 cement manufacturing sites, over 99 concrete plants, and a nationwide network of channel partners to serve its customers. 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.
Written by Adhvaitha Nayani
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