Stock of Adani Group surged following a significant increase in the company’s net profit by 103% year-over-year.
Stock of Adani Group: The shares of one of India’s largest cement companies are in the spotlight following a significant increase in net profits during Q3FY25, driven by record-breaking volume and revenue growth.
Share Price Movement
ACC Ltd, with a market capitalization of Rs 37,332.11 Crores, saw its shares trading at around Rs 2,028, representing a 1.6% increase from the previous close of Rs 1995 per share as of Tuesday afternoon.
Q3FY25 Results
ACC Ltd reported a remarkable 103% increase in net profits, reaching an all-time high PAT of Rs 1,092 Cr in Q3FY25, up from Rs 538 Cr in Q3FY24. Quarterly net profits surged by 446%, rising from Rs 200 Crores in Q2FY25. Additionally, revenue from operations climbed by 21% from Rs 4,914 Cr in Q3FY24 to Rs 5,927 Cr in Q3FY25, marking the highest revenue in the Q3 Series over the past 5 years. Quarterly revenue also grew by 15% from Rs 4,521 Crores in Q2FY25.
Operating EBITDA increased 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.
As of Q3FY25, Cash & Cash equivalent stood at Rs. 2,526 Cr, 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, driven by higher trade volumes and premium product volumes (11% YoY), solidifying market leadership.
Sales Volume for Cement and Clinker rose from 8.9 Million Tonnes in Q
Management Commentary
Mr. Ajay Kapur, Whole Time Director & CEO of ACC Ltd, expressed, “Our Q3 results showcase our strategic focus on driving growth through increased volumes, cost optimization, and improved efficiencies. The strong demand for our premium cement products, combined with our commitment to excellence across all aspects aligned with our ESG leadership, allows us to leverage innovation and sustainability to maintain our competitive edge and enhance stakeholder value. We are well-positioned to achieve sustained profitability and capitalize on the strategic vision we have set for our business.”
Future Outlook
The cement sector experienced modest growth of 1.5-2% in H1 FY’25. Anticipated growth in demand is expected in Q4 FY’25 as construction activity rises in infrastructure and housing sectors. The pro-infra and housing Budget 2025, along with increased government spending, are projected to boost growth, with cement demand expected to grow by 4-5% for FY25.
Brokerage Ratings
Following the Q3FY25 results, global brokerage firm CLSA has maintained its ‘Outperform’ rating on the stock, with a target price of Rs 2,580 per share. Meanwhile, Japanese firm Nomura has retained its ‘Reduce’ rating, setting a target price of Rs 1,920 per share.
About ACC Ltd
Established in 1936, ACC Limited, a subsidiary of Ambuja Cements, is one of India’s leading producers of cement and ready-mix concrete. As a member of the diversified Adani Group, which boasts the largest and fastest-growing portfolio of sustainable businesses, ACC operates 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.
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