Team News Riveting
Ahmedabad, April 27
ACC Limited, the cement and building material company of Adani Cement and part of the diversified Adani Group, has announced a dividend of Rs 9.25 per share.
The company today announced the financial results for the quarter and full year ended March 31, 2023 (15 months). “The Board of Directors have recommended a dividend on equity shares at Rs. 9.25 per share,” the company said.
Various initiatives on operational efficiencies, synergies and business excellence have resulted into substantial improvement in business parameters of the Company.
Company’s volume increased by 9 per cent Quarter-on-Quarter (QoQ) at 8.5 MT, supported by an increase in blended cement (clinker factor reduced from 56.1 per cent to 54.8 per cent), better route planning and higher operational synergies with parent, M/s Ambuja Cements Limited. Market leadership maintained across key markets.
Kiln fuel cost reduced by 10 per cent from Rs. 2.61 per ‘000 kCal to Rs 2.35 per ‘000 kCal with change in coal basket, group synergies on coal procurement, higher Alternate Fuel and Raw Materials (AFR) factor. Warehouse infrastructure optimized, direct dispatch improved (45 per cent to 46 per cent), lead distance reduced (165 KM to 161 KM) & higher dispatches through rail helped to reduce logistics cost from Rs. 2.90 ptpk to Rs. 2.86 ptpk. Manpower cost reduced QoQ from Rs. 262 PMT to Rs. 250 PMT
The net revenue was sequentially up by 6 per cent at Rs 4,791 crore and EBITDA rose by 40 per cent at Rs 588 crore EBITDA margin expanded from 9.3 per cent to 12.3 per cent on cost optimization and leveraging synergies from adjacency businesses of Adani Group.
While Fuel cost is on a declining curve, EBITDA is lower YoY due to higher fuel cost compared to last year. Fuel cost is expected to further reduce in the coming months through synergies with the Group.
Business initiatives are expected to further bring down operating cost, reduce clinker factor, reduce logistics cost, improve sale of blended cement and expand EBITDA margin.
RMX & Construction Chemicals business are stable showing positive uptrend due to improved market demand.
Ametha Integrated Unit to be commissioned by Q2 FY24 which will increase Clinker capacity by 3.30. MTPA (EC approvals in hand for 2.75 MTPA) and Grinding capacity by 1 MTPA.
Ajay Kapur, Whole Time Director & CEO, ACC Limited said, “Our transformation journey fuelled by sizeable operational efficiencies, improved synergies and business excellence has led to substantial improvement in our financial performance and overall business indicators. We have a detailed blueprint on each of the cost factors and initiatives to reduce & improve. This along with capex program will position the Company back into growth momentum synonymous with its legacy. We have consistently included sustainability in all our operational and growth planning. We have continued to reduce our carbon footprint by lowering the clinker factor, reducing thermal and electrical energy intensity, implementing Waste Heat Recovery Systems at our plants and increasing our use of and capacity of generating renewable energy. Our long-term competitiveness remains intact, giving us industry-leading profitability, even as we pursue our growth aspirations. We are confident of continuing our journey of strong performance in the coming quarters.”
“We are encouraged by the Government’s increased spending on infrastructure development, particularly roads, railways, affordable housing and other schemes as announced in the recent Union Budget. We are optimistic and maintain a positive outlook that the government’s timely and pro-active measures will open up more opportunities for the cement sector which will stimulate cement demand and enhance economic growth,” the company said.
