Q1 2025 ACC Ltd Earnings Call Transcript
Key Points
- ACC Ltd (BOM:500410) reported a consolidated revenue of INR 8,311 crore, driven by strong market management and dealer network expansion.
- The company achieved a 13% decline in energy costs due to better fuel management, resulting in a reduction in kiln-fuel costs.
- Transportation costs declined by 8% due to footprint optimization and increased direct dispatches to customers.
- ACC Ltd (BOM:500410) plans to expand its cement capacity to 140 million tonnes by FY28, with significant progress in ongoing projects.
- The company remains debt-free and plans to fund capacity growth through internal accruals and operating cash flows.
- The cement prices have fallen by 5% to 6%, impacting the EBITDA per tonne.
- The company faced capacity constraints in the East and South regions, affecting volume growth.
- There is a concern about the potential impact of limestone lease expiries by 2030, although ACC Ltd (BOM:500410) has plans to mitigate this.
- The company has significant CapEx plans, including INR 10,000 crore for the full year, which may impact cash reserves.
- The industry faces competitive pressures and tepid demand, which could affect future pricing and profitability.
Ladies and gentlemen, good day, and welcome to the Ambuja Cement Limited Q1 and FY25 earnings conference call. (Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Mr. Jashandeep from Nomura. Thank you and over to you, sir.
Thank you, operator. Good afternoon, everyone, and thank you for joining the call. Without much ado, I will transfer the call to Mr. Deepak Balwani, Head of Investor Relations. Mr. Deepak, over to you.
Thank you, Jashandeep. It is indeed my pleasure to welcome all of you to Ambuja's earnings call for quarter one FY25. Ambuja Cement Limited, along with its listed subsidiary ACC and Sanghi, is one of India's leading cement companies and a member of the diversified Adani Group, the largest and the fastest growing portfolio of diversified sustainable businesses.
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