Chapter 1

Economy & industry profile

1.1 Economy overview : ACC Limited is a part of the diversified Adani Group and
one of India’s leading producers of cement and ready-mix concrete. We have
been known as the Goto brand for cement in India for more than 86 years.
With a world-class R&D centre, the quality of ACC’s products and services,
as well as its commitment to technological development, make it a preferred
brand in building materials.
ACC Cement, a prominent player in India's cement
industry, operates numerous cement plants nationwide, contributing significantly to the
country's construction sector. Its revenue streams predominantly derive from cement
sales, with market share subject to fluctuations based on demand, pricing strategies, and
competition from peers like UltraTech Cement and Ambuja Cement. With a substantial
production capacity spanning millions of tons annually, ACC Cement continuously
invests in expanding and modernizing its facilities to meet escalating market demands
efficiently. Financial performance is shaped by factors such as construction activity, input
costs, pricing dynamics, and broader economic conditions. Strategic investments are
directed towards capacity expansions and sustainability initiatives, aligning with long-
term market projections and regulatory requirements. ACC Cement, as part of
LafargeHolcim, may also leverage global insights and best practices to navigate
international market trends. Adherence to regulatory frameworks, environmental
sustainability, and community engagement are integral aspects of its operational ethos.
For the latest economic insights, investors typically refer to ACC Cement's annual reports
and financial disclosures.

National Presence 16
Over the years, we have set up manufacturing Cement plants
and grinding units, along with ready-mix 36.05 MTPA
concrete plants across the length and breadth Installed cement manufacturing
of India capacity

85 +
Ready-Mix concrete plants

56,943
Channel partners
Market size :

4% Economic growth in 2019-20 Even as the economy negotiated a temporary

recession, it witnessed an uptrend in inflation posing a policy challenge. The nationwide lockdown
and supply disruption resulted in overall inflation reaching 7.6% in October 2020. Decline in food
prices and high base effect of last year brought the Consumer Price Index-based inflation (‘CPI
inflation’) back within the Reserve Bank of India’s (‘RBI’s) target band of 2-6% in December 2020 to
a below-consensus rate of 4.6%. The CPI inflation for fiscal 2020-21 is expected to be between 6-7%.
The support package announced by the Government of India (including monetary measures by the
RBI in response to the COVID-19 crisis) is estimated at an overall 15% of GDP, with direct spend in
the current fiscal at ~2% of GDP. The fiscal deficit of the Central Government is expected to touch
9.5% of GDP in 2020-21, largely due to lower revenues on the back of sharp contraction in economic
activity in the first quarter of fiscal 2020. Monetary policy has responded aggressively to the crisis
and the repo rates are at a record low of 4%, with a 115 basis point cut in 2020. The outlook for fiscal
2021-22 is firmly positive with an estimated GDP growth of ~11%. The Union Budget 2021 focuses
on continued spending to stimulate growth as the economy tries to recover from the impact of
COVID-19. The outlay for capital expenditure for Financial Year 2021-22 has been increased by 26%
YoY with a specific emphasis on infrastructure which, in turn, will provide a boost to the employment
numbers. While this would stretch the fiscal consolidation path in the near to medium term, the fiscal
deficit is budgeted to improve to 6.8% of GDP in 2021-22.

11% Estimated GDP growth for 2021-22 Rural incomes increased YoY in
2020 led by agricultural profitability and Mahatma Gandhi National Rural Employment Guarantee
Act (‘MGNREGA’) allocations. The highest-ever grant of more than `1 Lakh Crore was made under
the scheme after earmarking an additional ~`40,000 Crore to the earlier budget estimate of `61,000
Crore. The outlook for the cement sector in 2021 is robust, with growth estimated at more than 10%
YoY over that in 2020. The country’s demand revival is likely to be led by the North, East and Central
regions. The primary drivers of growth will be infrastructure and affordable housing. Highways and
roads, metro rail projects and dedicated freight corridors are expected to see increased levels of
activity with sharply higher budgetary allocations in the next year. The continued focus on affordable
housing will also ensure healthy demand for cement in the coming year.

1.2 : Industry overview :

Introduction

ACC at a Glance

ACC Limited (ACC) is a leading player in the Indian building materials space,
with a pan-India manufacturing and marketing presence. With 18 cement
manufacturing units, 82+ ready mix concrete plants, highly skilled workforce, a
vast distribution network of channel partners and a countrywide spread of sales
offices, it contributes tremendously to the landscape of the country.
For over 80 years, ACC has been synonymous with cement, establishing its
reputation as a pioneer organisation that consistently sets new benchmarks in
research and innovative product development.
History was created more than eight decades ago when the doyens of the Indian
cement industry unified their operations to build the foundation of a company that
has only grown stronger with every passing year. From the Bhakra Nangal Dam in
1960 to the Mumbai-Pune Expressway, ACC cement is at the heart of iconic
landmarks across the country.
 Our success over the years can be attributed to our unrelenting focus on customer
centricity, ethical business practices and sustainable development.
ACC’s brand architecture comprises the Gold range and Silver range of products
assuring superior quality for general construction as well as for specialised
applications and environments. The ready mix concrete product range provides
one-stop solutions from basic requirements to high grades of concrete to build the
country’s tallest structures.
Sustainability is an integral part of our business strategy, with our Sustainable
Development 2030 Plan focused on four broad themes: Climate, Circular
Economy, Water & Nature and People & Communities. Our corporate social
responsibility efforts benefit local communities across the country by furthering
economic and social progress. ACC’s earliest initiatives in community
development date back to the 1940's - long before the term 'corporate social
responsibility' was coined.
ACC was among the first Indian companies to include commitment to
environmental protection as one of its corporate objectives. Since inception, we
have integrated this commitment into all activities of our value chain, from mining
to sales to promoting the use of alternative fuels and resources, resulting in one of
the lowest carbon footprints in the cement industry.
In 2022, ACC became a part of Adani Group - the largest and fastest-growing
portfolio of diversified sustainable businesses.

Since inception in
1936,
The company has been a
trendsetter and important The company's various
ACC has a unique track
benchmark for the cement manufacturing units are
record of innovative
industry in many areas of cement backed by a central
research, product
and concrete technology technology support services
development and
centre - the only one of its
specialized consultancy
kind in the Indian cement
services.
industry.
ACC has rich experience in mining, being the largest user of limestone. As one of the largest
cement producers in India, it is also among the biggest customers of the domestic coal industry,
of Indian Railways, and a considerable user of the country’s road transport network services for
inward and outward movement of materials and products.

Government initiatives :
The Indian government has implemented various initiatives and
policies aimed at supporting and promoting the cement industry in the country. These
initiatives typically focus on infrastructure development, sustainability, regulatory reforms,
and ease of doing business. Here are some key government initiatives for the cement industry
in India:

1. Infrastructure Development: The government has launched several infrastructure

development projects, such as roads, highways, bridges, airports, and urban
infrastructure, which drive demand for cement. Initiatives like the Bharatmala project,
Pradhan Mantri Gram Sadak Yojana (PMGSY), Smart Cities Mission, and Housing
for All contribute to increased cement consumption.
2. Housing Schemes: Government schemes like Pradhan Mantri Awas Yojana (PMAY)
aim to provide affordable housing to all citizens, driving demand for cement in the
construction of residential buildings. These schemes focus on urban and rural
housing, including slum redevelopment and affordable housing for economically
weaker sections.
3. GST Reform: The implementation of the Goods and Services Tax (GST) has
streamlined taxation and simplified compliance for cement manufacturers. The GST
rates for cement have been revised to ensure uniformity and reduce tax burdens,
promoting a more transparent and efficient tax regime for the industry.
4. Investment in Infrastructure: The government encourages domestic and foreign
investment in cement manufacturing through initiatives such as the Make in India
program. Foreign Direct Investment (FDI) policies allow for greater participation of
international companies in the Indian cement sector, facilitating technology transfer
and capacity expansion.
5. Environmental Regulations: The government has introduced environmental
regulations to promote sustainable practices in the cement industry. Initiatives such as
the National Action Plan on Climate Change (NAPCC) and emission standards for air
pollution control drive the adoption of cleaner technologies, alternative fuels, and
energy-efficient processes.
6. Skill Development: Skill development initiatives, such as the Skill India Mission, aim
to enhance the capabilities of the workforce in the cement industry. Training programs
 focus on building technical skills, promoting safety practices, and improving
productivity across the value chain.
7. Ease of Doing Business: The government has undertaken reforms to improve the ease
of doing business in India, including streamlining approval processes, reducing
bureaucratic red tape, and enhancing infrastructure facilities. These measures aim to
attract investment, foster innovation, and stimulate growth in the cement sector.
8. National Infrastructure Pipeline (NIP): The National Infrastructure Pipeline (NIP) is a
government initiative that outlines a comprehensive plan for infrastructure
development in various sectors, including roads, railways, ports, and urban
infrastructure. The NIP aims to boost economic growth, create employment
opportunities, and drive demand for construction materials like cement.
9. Rural Development Schemes: Government schemes focused on rural development,
such as the Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA) and rural electrification programs, stimulate construction activity in
rural areas. Cement is a key material used in infrastructure projects under these
schemes, including rural roads, irrigation projects, and housing.
10. National Highways Authority of India (NHAI) Projects: The NHAI undertakes the
development of national highways and expressways across India. These large-scale
infrastructure projects drive significant demand for cement for road construction,
bridges, and related infrastructure.
11. Export Promotion: The government promotes cement exports through various
measures, including export incentives, trade agreements, and participation in
international trade fairs. Export promotion schemes aim to enhance the
competitiveness of Indian cement manufacturers in global markets and diversify
revenue streams.
12. Mineral Resource Allocation: The government regulates the allocation of mineral
resources, including limestone and coal, which are essential raw materials for cement
manufacturing. Policies related to mineral exploration, mining leases, and
environmental clearances impact the availability and cost of raw materials for the
cement industry.
13. Research and Development (R&D) Support: The government provides support for
research and development initiatives in the cement sector through grants, subsidies,
and collaborative programs with academic institutions and research organizations.
R&D efforts focus on innovation in cement production technologies, product quality
improvement, and environmental sustainability.
14. Urbanization and Industrialization Policies: Government policies promoting
urbanization, industrialization, and economic growth drive demand for cement in
urban infrastructure development, industrial estates, commercial complexes, and real
estate projects. Urbanization initiatives aim to address urban infrastructure challenges
and accommodate rapid urban population growth.
15. Infrastructure Financing: The government facilitates infrastructure financing through
initiatives like the National Investment and Infrastructure Fund (NIIF), infrastructure
development banks, and public-private partnerships (PPPs). These financing
mechanisms support large-scale infrastructure projects that require significant cement
consumption.
 16. Trade Policies: Government trade policies, including import tariffs, export quotas, and
trade agreements, influence the competitiveness of the domestic cement industry.
Trade policy measures aim to balance domestic supply and demand, prevent unfair
trade practices, and support the growth of domestic cement manufacturers

These initiatives collectively aim to stimulate growth, increase competitiveness, and

ensure sustainability in the Indian cement industry.

Forecast of ACC Cement :

In the foreseeable future, ACC Cement is poised to navigate a
dynamic landscape shaped by a convergence of industry trends and external forces. With
India's construction and infrastructure sectors continuing to expand, driven by
government investments and urbanization trends, ACC Cement is likely
on large as environmental concerns heighten, ACC Cement may
intensify its focus on sustainable practices, aiming to reduce carbon emissions, enhance
energy efficiency, and explore alternative fuels and materials. Technological innovation is
also expected to play a pivotal role as ACC Cement embraces advanced manufacturing
technologies to optimize operations and improve competitiveness. Furthermore,
diversification into related sectors and international expansion could feature prominently
in ACC Cement's strategic agenda as it seeks to mitigate risks and tap into new sources of
revenue. Amidst increasing competition and regulatory complexities, the company's
ability to adapt, innovate, and maintain a resilient supply chain will be critical.
Continuously aligning with evolving customer preferences and market dynamics will be
paramount for ACC Cement to sustain growth and reinforce its position as a key player in
the cement industry landscape.

Company profile
Overview
ACC Limited (Formerly The Associated Cement Companies Limited) is an Indian
cement producer, headquartered in Mumbai. It is a subsidiary of Ambuja Cements and a part
of the Adani Group. On 1 September 2006, the name of The Associated Cement Companies
Limited was changed to ACC Limited. The company was established in Mumbai,
Maharashtra on 1 August 1936.
History
In 1936, eleven cement companies belonging to Tata, Khatau, Killick Nixon and FE Dinshaw
groups merged to form a single entity, The Associated Cement Companies. Sir Nowroji B
Saklatvala was the first chairman of ACC. The first board of directors had some prominent
industrialists—J R D Tata, Ambalal Sarabhai, Walchand Hirachand, Dharamsey Khatau, Sir
Akbar Hydari, Nawab Salar Jung Bahadur and Sir Homy Mody.
The list of companies that were merged:[4]

 The Indian Cement Co. Ltd.

 The Katni Cement and Industrial Co. Ltd.
 Budhi Portland Cement Ltd.
 The Okha Cement Co. Ltd.
 The Gwalior Cement Company Ltd.
 The Punjab Portland Cement
 The United Cement Co. Ltd.
 The Shahabad Cement Co. Ltd.
 The Coimbatore Cement
 The Dewarkhand Cement Co. Ltd.
 The C. P. Cement Co. Ltd.
The management control of the company was taken over by Swiss cement manufacturer
Holcim Group in 2004. ACC operated as a subsidiary of Lafarge Holcim.[5] On 1 September
2006, the name of The Associated Cement Companies Limited was changed to ACC Limited.
The company is the only cement company to get Superbrand status in India.[6]
On 14 April 2022, Holcim announced that it would exit from the Indian market after 17 years
of operations as part of a strategy to focus on core markets and listed its stakes in ACC and
Ambuja Cements for sale.
On 15 May 2022, Adani Group acquired Holcim's stake in ACC and Ambuja Cements for
US$10.5 billion

ACC Limited

Each letter of "ACC" is colored in red.

Trade name : ACC
Formerly : The Associated Cement Companies Limited (1936–2006)
Company type :Public
Traded as : BSE: 500410
NSE : ACC
Industry : Building materials
Founded : 1 August 1936; 87 years ago
Headquarters : Mumbai, Maharashtra, India
Key people : Karan Adani (Chairman)
Ajay Kapur (MD & CEO)[1]
Products : Cement
Revenue : Decrease ₹20,451 crore (US$2.6 billion) (2024)[2]
Operating income : Increase ₹2,529 crore (US$320 million) (2024)[2]
Net income : Increase ₹2,336 crore (US$290 million) (2024)[2]
Total assets : Increase ₹23,385 crore (US$2.9 billion) (2024)[2]
Total equity : Increase ₹16,333 crore (US$2.0 billion) (2024)[2]
Owner Adani Group (56.69%)
Number of employees Decrease5,472 (2023)[2]
Parent Adani Group
Website www.acclimited.com

SWOT analysis :
Strengths:

Strong Brand Recognition: ACC Cement has established itself as a leading

brand in the Indian cement industry with a legacy spanning decades. Its
reputation for quality and reliability enhances customer trust and loyalty.

Extensive Distribution Network: ACC Cement boasts an extensive distribution

network across India, ensuring widespread availability of its products. This
network provides a competitive advantage in reaching diverse markets and
customer segments.

Technological Expertise: The company invests in advanced technologies and

modern manufacturing processes, allowing for efficient production, quality
control, and innovation in product development.

Parent Company Support: As part of the global conglomerate LafargeHolcim,

ACC Cement benefits from access to global resources, expertise, and best
practices, strengthening its competitive position in the market.

Weaknesses:

High Fixed Costs: Cement manufacturing involves high fixed costs, including
those related to production facilities, distribution infrastructure, and regulatory
compliance. Fluctuations in demand or input costs can impact profitability.

Environmental Compliance Challenges: Compliance with environmental

regulations presents challenges for the cement industry, including emissions
reduction, waste management, and resource conservation. Meeting stringent
environmental standards may require significant investments and operational
adjustments.

Dependency on Raw Materials: ACC Cement's operations are dependent on key

raw materials such as limestone and coal. Price volatility or supply disruptions
in these raw materials can affect production costs and profitability.

Opportunities:

Infrastructure Development: India's focus on infrastructure development

presents significant growth opportunities for ACC Cement. Government
initiatives such as the National Infrastructure Pipeline (NIP) and housing
schemes drive demand for cement in construction projects.

Urbanization Trends: Rapid urbanization and population growth fuel demand

for residential, commercial, and industrial infrastructure. ACC Cement can
capitalize on this trend by catering to urban construction needs and offering
innovative building solutions.

Sustainability Initiatives: Increasing emphasis on sustainability and green

building practices creates opportunities for ACC Cement to differentiate itself
with eco-friendly products and processes. Investing in renewable energy,
alternative fuels, and carbon capture technologies can enhance its environmental
credentials.

Threats:

Intense Competition: The cement industry in India is highly competitive, with

numerous players vying for market share. Intense competition can lead to price
wars, margin pressures, and challenges in maintaining profitability.

Regulatory Risks: Regulatory changes and compliance requirements pose risks

to ACC Cement's operations. Environmental regulations, taxation policies, and
land acquisition laws can impact production costs, expansion plans, and overall
business operations.

Economic Volatility: Economic fluctuations, including changes in GDP growth,

inflation rates, and interest rates, can impact construction activity and cement
demand. Economic downturns or slowdowns may lead to reduced infrastructure
spending and weaker demand for cement.

By addressing weaknesses, leveraging strengths, capitalizing on opportunities,

and mitigating threats, ACC Cement can develop strategies to enhance its
competitive position, sustain growth, and navigate challenges in the dynamic
cement industry landscape.

Financial statements

1.Income statement
Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar 24 Mar 23 Dec 21 Dec 20 Dec 19

12 mths 15 mths 12 mths 12 mths 12 mths

INCOME
Revenue From Operations [Gross] 19,952.23 21,767.29 15,814.40 13,486.83 15,343.11
Revenue From Operations [Net] 19,952.23 21,767.29 15,814.40 13,486.83 15,343.11
Other Operating Revenues 0.00 442.68 336.95 297.71 313.54
Total Operating Revenues 19,952.23 22,209.97 16,151.35 13,784.54 15,656.65
Other Income 491.51 337.18 204.76 203.98 311.21
Total Revenue 20,443.74 22,547.15 16,356.11 13,988.52 15,967.86
EXPENSES
Cost Of Materials Consumed 3,172.70 9,085.46 5,481.08 4,245.47 5,389.44
Purchase Of Stock-In Trade 2,615.81 2,300.95 921.19 696.89 361.69
Operating And Direct Expenses 0.00 5,168.26 3,844.71 3,431.81 4,050.06
Changes In Inventories Of FG,WIP And
33.87 -193.19 -174.25 142.41 100.81
Stock-In Trade
Employee Benefit Expenses 733.59 1,036.20 834.02 839.07 863.97
Finance Costs 153.79 77.18 54.63 57.04 86.22
Depreciation And Amortisation Expenses 876.27 835.09 597.28 635.30 602.97
Other Expenses 10,338.63 2,912.17 2,268.65 2,077.76 2,483.55
Less: Inter Unit / Segment / Division
0.00 18.87 24.45 1.02 2.32
Transfer
Total Expenses 17,924.66 21,203.25 13,802.86 12,124.73 13,936.39
Mar 24 Mar 23 Dec 21 Dec 20 Dec 19

12 mths 15 mths 12 mths 12 mths 12 mths

Profit/Loss Before Exceptional,

2,519.08 1,343.90 2,553.25 1,863.79 2,031.47
ExtraOrdinary Items And Tax
Exceptional Items 0.00 -161.77 -92.86 -176.01 0.00
Profit/Loss Before Tax 2,519.08 1,182.13 2,460.39 1,687.78 2,031.47
Tax Expenses-Continued Operations
Current Tax 394.84 272.27 635.41 547.38 689.81
Deferred Tax 0.00 39.95 4.71 -274.54 -17.25
Total Tax Expenses 394.84 312.22 640.12 272.84 672.56
Profit/Loss After Tax And Before
2,124.24 869.91 1,820.27 1,414.94 1,358.91
ExtraOrdinary Items
Profit/Loss From Continuing
2,124.24 869.91 1,820.27 1,414.94 1,358.91
Operations
Profit/Loss For The Period 2,124.24 869.91 1,820.27 1,414.94 1,358.91
Mar 24 Mar 23 Dec 21 Dec 20 Dec 19

12 mths 15 mths 12 mths 12 mths 12 mths

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE
Basic EPS (Rs.) 113.12 46.32 96.93 75.35 72.36
Diluted EPS (Rs.) 112.82 46.20 96.67 75.17 72.19
VALUE OF IMPORTED AND INDIGENIOUS RAW
MATERIALS
STORES, SPARES AND LOOSE TOOLS
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 0.00 1,089.17 262.90 262.90 262.90
Tax On Dividend 0.00 0.00 0.00 0.00 54.04
Equity Dividend Rate (%) 0.00 93.00 580.00 140.00 140.00

Source : Dion Global Solutions Limited

2. Balance sheet :

Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar 24 Mar 23 Dec 21 Dec 20 Dec 19

12 mths 15 mths 12 mths 12 mths 12 mths

INCOME
Revenue From Operations [Gross] 19,952.23 21,767.29 15,814.40 13,486.83 15,343.11
Revenue From Operations [Net] 19,952.23 21,767.29 15,814.40 13,486.83 15,343.11
Other Operating Revenues 0.00 442.68 336.95 297.71 313.54
Total Operating Revenues 19,952.23 22,209.97 16,151.35 13,784.54 15,656.65
Other Income 491.51 337.18 204.76 203.98 311.21
Total Revenue 20,443.74 22,547.15 16,356.11 13,988.52 15,967.86
EXPENSES
Cost Of Materials Consumed 3,172.70 9,085.46 5,481.08 4,245.47 5,389.44
Purchase Of Stock-In Trade 2,615.81 2,300.95 921.19 696.89 361.69
Operating And Direct Expenses 0.00 5,168.26 3,844.71 3,431.81 4,050.06
Changes In Inventories Of FG,WIP
33.87 -193.19 -174.25 142.41 100.81
And Stock-In Trade
Employee Benefit Expenses 733.59 1,036.20 834.02 839.07 863.97
Finance Costs 153.79 77.18 54.63 57.04 86.22
Depreciation And Amortisation
876.27 835.09 597.28 635.30 602.97
Expenses
Other Expenses 10,338.63 2,912.17 2,268.65 2,077.76 2,483.55
Less: Inter Unit / Segment / Division
0.00 18.87 24.45 1.02 2.32
Transfer
Total Expenses 17,924.66 21,203.25 13,802.86 12,124.73 13,936.39
Mar 24 Mar 23 Dec 21 Dec 20 Dec 19

12 mths 15 mths 12 mths 12 mths 12 mths

Profit/Loss Before Exceptional,
2,519.08 1,343.90 2,553.25 1,863.79 2,031.47
ExtraOrdinary Items And Tax
Exceptional Items 0.00 -161.77 -92.86 -176.01 0.00
Profit/Loss Before Tax 2,519.08 1,182.13 2,460.39 1,687.78 2,031.47
Tax Expenses-Continued Operations
Current Tax 394.84 272.27 635.41 547.38 689.81
Deferred Tax 0.00 39.95 4.71 -274.54 -17.25
Total Tax Expenses 394.84 312.22 640.12 272.84 672.56
Profit/Loss After Tax And Before
2,124.24 869.91 1,820.27 1,414.94 1,358.91
ExtraOrdinary Items
Profit/Loss From Continuing
2,124.24 869.91 1,820.27 1,414.94 1,358.91
Operations
Profit/Loss For The Period 2,124.24 869.91 1,820.27 1,414.94 1,358.91
Mar 24 Mar 23 Dec 21 Dec 20 Dec 19

12 mths 15 mths 12 mths 12 mths 12 mths

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE
Basic EPS (Rs.) 113.12 46.32 96.93 75.35 72.36
Diluted EPS (Rs.) 112.82 46.20 96.67 75.17 72.19
VALUE OF IMPORTED AND INDIGENIOUS
RAW MATERIALS
STORES, SPARES AND LOOSE TOOLS
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 0.00 1,089.17 262.90 262.90 262.90
Tax On Dividend 0.00 0.00 0.00 0.00 54.04
Equity Dividend Rate (%) 0.00 93.00 580.00 140.00 140.00

Source : Dion Global Solutions Limited

3. Cash flow statement

ACC Previous Years »

Cash Flow ------------------- in Rs. Cr. -------------------

Mar 24 Mar 23 Mar 23 Dec 21 Dec 21

12 mths 15 mths 15 mths 12 mths 12 mths

Net Profit/Loss Before

2,519.08 0.00 1,182.13 0.00 2,460.39
Extraordinary Items And Tax
Net CashFlow From Operating
2,980.37 0.00 -1,238.77 0.00 2,831.62
Activities

Net Cash Used In Investing Activities -1,169.89 0.00 -4,641.98 0.00 -989.01

Net Cash Used From Financing

-442.29 0.00 -1,237.70 0.00 -330.52
Activities

Foreign Exchange Gains / Losses 2.30 0.00 0.00 0.00 0.00

Adjustments on Amalgamation /
0.00 0.00 0.06 0.00 0.23
Merger / Demerger / Others

Net Inc/Dec In Cash And Cash

1,370.49 0.00 -7,118.39 0.00 1,512.32
Equivalents

Cash And Cash Equivalents Begin of

128.85 0.00 7,247.24 0.00 5,734.92
Year

Cash And Cash Equivalents End Of

1,499.34 0.00 128.85 0.00 7,247.24
Year

Financial statement analysis

1. Ration analysis

KEY FINANCIAL Mar-24 Mar-23 Dec-21 Dec-20 Dec-19

RATIOS OF ACC (in Rs.
Cr.)
PER SHARE RATIOS
Basic EPS (Rs.) 113.12 46.32 96.93 75.35 72.36
Diluted EPS (Rs.) 112.82 46.2 96.67 75.17 72.19
Cash EPS (Rs.) 159.61 90.7 128.6 109.06 104.36
Book Value 852.28 747.01 756.87 673.52 612.87
[ExclRevalReserve]/Share
(Rs.)
Book Value 852.28 747.01 756.87 673.52 612.87
[InclRevalReserve]/Share
(Rs.)
Dividend / Share(Rs.) 0 9.25 58 14 14
Revenue from 1,061.35 1,181.44 859.16 733.26 832.84
Operations/Share (Rs.)
PBDIT/Share (Rs.) 188.79 120.02 170.5 135.97 144.72
PBIT/Share (Rs.) 142.18 75.59 138.72 102.18 112.65
PBT/Share (Rs.) 134 62.88 130.88 89.78 108.06
Net Profit/Share (Rs.) 113 46.27 96.83 75.27 72.29
 per share ratios
100%
80%
60%
40%
20%
0%
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24

PER SHARE RATIOS Basic EPS (Rs.)

Diluted EPS (Rs.) Cash EPS (Rs.)
Book Value [ExclRevalReserve]/Share (Rs.) Book Value [InclRevalReserve]/Share (Rs.)
Dividend / Share(Rs.) Revenue from Operations/Share (Rs.)
PBDIT/Share (Rs.) PBIT/Share (Rs.)
PBT/Share (Rs.) Net Profit/Share (Rs.)

Profitability Ratio
PROFITABILITY Mar-24 Mar-23 Dec-21 Dec-20 Dec-19
RATIOS
PBDIT Margin (%) 17.78 10.15 19.84 18.54 17.37
PBIT Margin (%) 13.39 6.39 16.14 13.93 13.52
PBT Margin (%) 12.62 5.32 15.23 12.24 12.97
Net Profit Margin (%) 10.64 3.91 11.27 10.26 8.67
Return on Networth / 13.25 6.19 12.79 11.17 11.79
Equity (%)
Return on Capital 15.86 9.61 17.47 14.4 17.08
Employed (%)
Return on Assets (%) 9.27 4.26 8.7 7.8 7.95
Total Debt/Equity (X) 0 0 0 0 0
Asset Turnover Ratio 0.92 1.07 0.83 0.78 91.65
(%)

profitability ratio
100
80
60
40
20
0
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24

PBDIT Margin (%) PBIT Margin (%)

PBT Margin (%) Net Profit Margin (%)
Return on Networth / Equity (%) Return on Capital Employed (%)
Return on Assets (%) Total Debt/Equity (X)
Asset Turnover Ratio (%)
 LIQUIDITY RATIO
LIQUIDITY RATIOS Mar-24 Mar-23 Dec-21 Dec-20 Dec-19
Current Ratio (X) 1.73 1.44 1.71 1.74 1.58
Quick Ratio (X) 1.43 1.16 1.5 1.55 1.34
Inventory Turnover 1.83 6.27 5.04 4.16 13.72
Ratio (X)
Dividend Payout Ratio 0 125.2 14.44 18.58 19.34
(NP) (%)
Dividend Payout Ratio 0 63.88 10.87 12.82 13.4
(CP) (%)
Earnings Retention 0 -25.2 85.56 81.42 80.66
Ratio (%)
Cash Earnings 0 36.12 89.13 87.18 86.6
Retention Ratio (%)

Liquidity ratio
140
120
100
80
60
40
20
0
-20 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24
-40

Current Ratio (X) Quick Ratio (X)

Inventory Turnover Ratio (X) Dividend Payout Ratio (NP) (%)
Dividend Payout Ratio (CP) (%) Earnings Retention Ratio (%)
Cash Earnings Retention Ratio (%)

Valuation ratios
VALUATION RATIOS Mar-24 Mar-23 Dec-21 Dec-20 Dec-19
Enterprise Value (Cr.) 45,151.59 31,046.48 34,280.72 24,533.21 22,619.88
EV/Net Operating 2.26 1.4 2.12 1.78 1.44
Revenue (X)
EV/EBITDA (X) 12.72 13.76 10.7 9.6 8.31
MarketCap/Net 2.35 1.41 2.58 2.21 1.73
Operating Revenue (X)
Retention Ratios (%) 0 -25.2 85.55 81.41 80.65
Price/BV (X) 2.92 2.23 2.93 2.4 2.36
Price/Net Operating 2.35 1.41 2.58 2.21 1.73
Revenue
Earnings Yield 0.05 0.03 0.04 0.05 0.05
 valuation ratios
50,000.00

40,000.00

30,000.00

20,000.00

10,000.00

0.00
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24
-10,000.00

Enterprise Value (Cr.) EV/Net Operating Revenue (X)

EV/EBITDA (X) MarketCap/Net Operating Revenue (X)
Retention Ratios (%) Price/BV (X)
Price/Net Operating Revenue Earnings Yield

Trend Analysis :
Finding and suggestions:
Findings
Market Position: ACC Cement is one of the leading players in the Indian cement industry,
with a significant market share.
Financial Performance: ACC Cement's financial performance typically includes factors such
as revenue growth, profit margins, and earnings per share. It competes with other major
cement companies in India.
Production Capacity: ACC Cement has substantial production capacity across various plants
in India, contributing to its market presence and sales volumes.
Product Portfolio: The company offers a wide range of cement products catering to different
construction needs, including ordinary Portland cement, blended cement, and specialty
cement products.
Sustainability Initiatives: Like many cement companies, ACC Cement likely emphasizes
sustainability in its operations, focusing on reducing carbon emissions, improving energy
efficiency, and adopting eco-friendly practices.
Infrastructure Development: ACC Cement's performance is often influenced by government
infrastructure projects, urbanization trends, and the overall economic growth of India, as
cement is a key material for construction.
Technological Advancements: The industry is continually evolving with technological
advancements aimed at enhancing production efficiency, quality control, and environmental
sustainability.
Regulatory Environment: Regulatory compliance and environmental regulations play a
crucial role in shaping the operations and strategies of cement companies like ACC Cement.
Supply Chain Management: Effective supply chain management is essential for cement
companies to ensure timely delivery of products to customers and optimize distribution
networks.
Global Trends: Global economic trends, such as fluctuations in commodity prices, currency
exchange rates, and demand-supply dynamics, also impact the performance of cement
companies operating in India.
These points provide a broad overview of ACC Cement and the factors that influence its
performance within the cement industry. For the most current and detailed findings, it's
essential to refer to the company's latest financial reports, industry analyses, and news
updates.

Suggestions :
Investment in Sustainability: Given the increasing emphasis on sustainability in the
construction industry, ACC Cement could further invest in research and development of eco-
friendly cement products and manufacturing processes. This could include exploring
alternative materials, enhancing energy efficiency, and reducing carbon emissions.
Market Diversification: While ACC Cement is a prominent player in the Indian market,
exploring opportunities for expansion into new geographic regions or markets could help
diversify its revenue streams and reduce dependency on specific regions or segments.
Digital Transformation: Embracing digital technologies such as automation, data analytics,
and Internet of Things (IoT) can enhance operational efficiency, optimize supply chain
management, and improve product quality for ACC Cement.
Customer Engagement: Strengthening relationships with key customers, such as construction
companies and infrastructure developers, through tailored solutions, reliable delivery, and
excellent customer service can help ACC Cement maintain its market leadership.
Strategic Partnerships: Collaborating with technology providers, research institutions, or
government agencies can facilitate innovation and help ACC Cement stay ahead of industry
trends and regulatory requirements.
Employee Training and Development: Investing in employee training programs to enhance
skills, promote safety practices, and foster a culture of innovation can contribute to the long-
term success and sustainability of ACC Cement.
Risk Management: Continuously monitoring and managing risks such as raw material price
volatility, regulatory changes, and geopolitical factors can mitigate potential disruptions to
ACC Cement's operations and supply chain.
Community Engagement: Demonstrating corporate social responsibility through community
engagement initiatives, environmental stewardship, and inclusive business practices can
enhance ACC Cement's reputation and brand value.
Continuous Improvement: Implementing a culture of continuous improvement across all
aspects of the business, from manufacturing processes to customer service, can drive
efficiency gains and maintain competitiveness in the market.
Adaptation to Market Trends: Keeping abreast of emerging trends such as urbanization,
infrastructure development, and technological advancements in construction methods can
help ACC Cement align its strategies and offerings with evolving market demands.
By considering these suggestions and incorporating them into its strategic planning and
operations, ACC Cement can position itself for sustained growth and success in the dynamic
cement industry.

Conclusion :

In conclusion, our exploration of the ACC Cement industry highlights its pivotal role in
driving India's infrastructure development and economic growth. As one of the leading
cement producers in the country, ACC Cement exemplifies the resilience, innovation, and
commitment to sustainability necessary to thrive in a dynamic and competitive market
environment.

Throughout our analysis, several key themes have emerged. Firstly, the industry's robust
growth trajectory is underpinned by India's burgeoning population, rapid urbanization, and
ambitious infrastructure projects. As a fundamental building material, cement demand
remains high, creating opportunities for companies like ACC Cement to expand their market
presence and contribute to national development goals.

Moreover, ACC Cement's strategic initiatives, including technological advancements,

product diversification, and sustainability efforts, underscore its proactive approach to
addressing industry challenges and meeting evolving customer needs. By investing in state-
of-the-art production facilities, eco-friendly solutions, and digital transformation, ACC
Cement is not only enhancing operational efficiency but also driving innovation and value
creation across the value chain.

However, it's essential to recognize the industry's ongoing challenges, including regulatory
compliance, environmental sustainability, and market volatility. Cement producers must
navigate these challenges while maintaining a focus on long-term growth, profitability, and
responsible business practices.

Looking ahead, the ACC Cement industry is poised for continued expansion and innovation,
fueled by infrastructure investments, urban development initiatives, and technological
advancements. By leveraging its strengths, embracing emerging trends, and collaborating
with stakeholders across the value chain, the industry can sustain its growth momentum and
contribute to India's socio-economic progress in the years to come.
In conclusion, the ACC Cement industry stands at the forefront of India's construction sector,
driving innovation, growth, and sustainability while cementing its position as a cornerstone of
the nation's development journey.