ACC Ltd
NSE:ACC
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ACC Ltd
ACC Ltd., originally established as Associated Cement Companies Limited in 1936, has a rich legacy in India's building materials industry. The company has become synonymous with cement, a crucial ingredient in infrastructure and housing projects across the nation. As one of India's leading manufacturers of cement and ready-mix concrete, ACC Ltd. has demonstrated resilience through its expansive network of factories, transit points, and sales offices. The company plays a pivotal role in the supply chain of construction by ensuring that its products meet the diverse needs of urban development and rural expansion. Known for its focus on quality and innovation, ACC has pioneered environmentally friendly practices by embracing alternative fuels and raw material substitutions, thus reducing carbon footprints while maintaining superior product standards.
The pathway to profitability for ACC Ltd. is largely paved by its strategic positioning in the cement market, where it capitalizes on economies of scale and robust distribution channels to maintain competitive pricing. It generates revenue primarily through the sale of cement, with the Indian real estate and infrastructure sectors serving as major demand drivers. Given India’s continual push for infrastructure growth, aligned with government initiatives like 'Housing for All' and ‘Smart Cities,’ ACC is well-placed to benefit from heightened construction activities. Moreover, the company's continual emphasis on innovation and sustainability aligns with the broader global shift toward eco-friendly construction practices, thereby enhancing its market position and ensuring long-term viability in a competitive industry landscape.
ACC Ltd., originally established as Associated Cement Companies Limited in 1936, has a rich legacy in India's building materials industry. The company has become synonymous with cement, a crucial ingredient in infrastructure and housing projects across the nation. As one of India's leading manufacturers of cement and ready-mix concrete, ACC Ltd. has demonstrated resilience through its expansive network of factories, transit points, and sales offices. The company plays a pivotal role in the supply chain of construction by ensuring that its products meet the diverse needs of urban development and rural expansion. Known for its focus on quality and innovation, ACC has pioneered environmentally friendly practices by embracing alternative fuels and raw material substitutions, thus reducing carbon footprints while maintaining superior product standards.
The pathway to profitability for ACC Ltd. is largely paved by its strategic positioning in the cement market, where it capitalizes on economies of scale and robust distribution channels to maintain competitive pricing. It generates revenue primarily through the sale of cement, with the Indian real estate and infrastructure sectors serving as major demand drivers. Given India’s continual push for infrastructure growth, aligned with government initiatives like 'Housing for All' and ‘Smart Cities,’ ACC is well-placed to benefit from heightened construction activities. Moreover, the company's continual emphasis on innovation and sustainability aligns with the broader global shift toward eco-friendly construction practices, thereby enhancing its market position and ensuring long-term viability in a competitive industry landscape.
Volume Growth: Ambuja Cements delivered a standout quarter, with consolidated sales volumes rising 17% year-on-year and achieving their highest-ever quarterly volume at 18.9 million tonnes.
Profit Surge: Net profit (PAT) jumped 258% year-on-year to INR 378 crores, with management clarifying this figure excludes exceptional items for a true comparison.
Cost Control: Operating costs spiked this quarter due to one-off expenses, but exited December below INR 4,000 per tonne, down from INR 4,500 per tonne average, with further reductions expected.
Expansion Plans: Total cement capacity now stands at 109 million tonnes, and the company remains on track for 155 million tonnes by March 2028 through organic and inorganic growth.
Premiumization: Premium cement volumes now comprise 35% of trade sales, up 31% year-on-year, helping improve market share and realizations.
Renewable Energy: 900 megawatts of green power have been commissioned, though much of it is being sold externally until regulatory approvals allow for internal use.
Positive Demand Outlook: Management expects cement demand growth to remain strong at approximately 8% for FY26, with the industry benefiting from robust infrastructure and housing activity.
Margin Expansion Strategy: Despite cost pressures, management is confident that cost per tonne will drop further to INR 3,800 by March 2027 and INR 3,650 by March 2028.
