Cement manufacturer ACC reported a net profit of Rs 10.91 billion for the third quarter ending December 2024, a significant increase from the Rs 5.37 billion profit posted during the same period last year. The company’s revenue from operations reached Rs 52.07 billion in the current quarter, compared to Rs 48.55 billion a year ago.

The results for the quarter are not directly comparable to last year’s figures due to ACC’s acquisition of the remaining 55 per cent of Asian Concretes and Cements (ACCPL) and its step-down subsidiary, Asian Fine Cements. The consolidated financial results for this quarter include those of ACCPL.

Additionally, ACC received a Rs 7.20 billion refund from the government as an excise duty exemption on clinker consumption for the period from May 2005 to February 2013. This refund follows a ruling in ACC’s favour by the Customs, Excise, and Service Tax Appellate Tribunal. Of this amount, Rs 6.36 billion was recognised as income in the current quarter and the nine months ending December 31, 2024.

The company’s total expenses for the December quarter stood at Rs 50.99 billion, while its total income was Rs 65.75 billion. The revenue from the cement business was Rs 56.14 billion, and from Ready Mix Concrete, it was Rs 3.44 billion.

ACC attributed its performance to volume growth, cost optimization, and improved efficiency. The company expects continued growth, driven by demand for premium cement products and a focus on innovation and sustainability.

Looking ahead, ACC anticipates that the cement sector, which experienced modest growth of 1.5-2 per cent during the first half of FY25, will rebound in the fourth quarter as construction activity accelerates in the infrastructure and housing segments. The company projects cement demand growth of 4-5 per cent for FY25, supported by the pro-infrastructure and housing measures in the 2025 Budget and increased government spending on infrastructure projects.
News source: ET Energy