ACC Q3 Results: 22% revenue growth contributes to margin expansion

ACC Ltd reported a mixed set of earnings for the December quarter, with profit declining year-on-year, even as revenue, operating performance and margin improved.

The cement maker posted a net profit of ₹404

crore for Q3, down 63% from ₹1,092 crore a year ago. The decline was partly driven by a one-time impact of ₹49.5 crore related to the implementation of the new labour codes, which led to higher gratuity and leave encashment provisions.

Revenue rose 21.7% year-on-year to ₹6,391 crore from ₹5,252 crore, supported by higher volumes. ACC said it achieved its highest-ever quarterly sales volume during the period, aided by stronger demand and an improved product mix.

EBITDA increased 53.5% year-on-year to ₹608 crore, while EBITDA margin expanded to 9.5% from 7.5% a year earlier, reflecting operating leverage and a higher share of trade, premium cement and ready-mix concrete (RMX).

Commenting on the performance, Whole-Time Director and CEO Vinod Bahety said higher trade and premium sales, along with continued RMX expansion, supported better realisations compared with industry peers, even as the company focused on addressing key cost levers such as power, fuel efficiency and logistics.

ACC reiterated that it remains debt-free, with a net worth of ₹20,326 crore, and continues to hold AAA credit ratings from CRISIL and CARE.

During the quarter, ACC also announced the proposed amalgamation with Ambuja Cements to create a unified ‘One Cement Platform’, aimed at improving operational efficiency, capital allocation and long-term growth, subject to statutory approvals.

Shares of ACC Ltd were trading at ₹1,681.60 on the NSE on Wednesday, down 0.37% following the earnings announcement.