Q1 2027 ACC Ltd Earnings Call Transcript
Key Points
- Net operating cost reduced to INR4,241 per metric ton, a reduction of INR206 PMT from the previous quarter, putting the company on track to achieve its INR4,250 per tonne guidance for FY27.
- Trade sales share improved from 74% to 78% of overall sales, with premium products comprising 34% of trade sales, enhancing revenue quality.
- Green power capacity reached 973 megawatts, up almost 500 megawatts over the past year, helping reduce power cost from INR5.9 per kWh to INR4.9 per kWh.
- Clinker factor improved by 3% from 67% to 64%, while the share of blended cement increased to 85%, improving both profitability and sustainability.
- The company is targeting approximately INR250 per tonne of additional cost savings, with strong visibility from initiatives like logistics optimization and increased renewable energy use.
- Overall cement volumes declined 7% year-on-year due to a strategic reduction in lower-margin non-trade volumes, which fell 21% Y-o-Y.
- Net sales price (NSP) improvement was one of the lowest in the industry sequentially, impacted by accounting treatments and market-specific factors.
- The company temporarily suspended manufacturing operations at approximately 3.5 million tonnes of capacity for six months to optimize costs, impacting near-term output.
- Geopolitical tensions in West Asia led to cost escalations of approximately INR110 per tonne, which the company had to absorb.
- Capacity utilization remained low at 65%, and the company faces challenges in improving utilization and margins at acquired assets like Penna in the South.
Ladies and gentlemen, good day, and welcome to the Ambuja Cements Limited Q1 FY27 earnings conference call hosted by Nomura. (Operator Instructions) Please note that this conference is being recorded.
I will now hand the conference over to Mr. Jashandeep Chadha from Nomura for opening remarks. Thank you, and over to you.
Thank you, everyone. Without much delay, I will transfer the call to Mr. Deepak Balwani, Head of Investor Relations. Mr. Deepak, over to you.
Yes. Thank you, Jashandeep. On behalf of Ambuja Cements, it is my pleasure to welcome all participants to our earnings call for quarter one FY27. Ambuja Cement is the ninth largest cement company globally, a key part of diversified Adani Portfolio, the country's fastest-growing portfolio of sustainable businesses.
Before we begin, I would like to remind everyone that today's discussion may contain certain forward-looking
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