Rs 7.50/Share Dividend: Adani Group Cement Company Reports Strong Q4 Results; Profit Surges 2x YoY

ACC Ltd, a cement manufacturer under the Adani Group umbrella, has delivered an impressive performance in the fourth quarter of the fiscal year 2023-24, showcasing remarkable growth across key financial metrics.

According to the latest financial results released by ACC Ltd, the standalone net profit for the fourth quarter of FY24 surged by 216% to Rs 748.54 crore, compared to Rs 236.57 crore in the corresponding period last year. This growth is indicative of the company's robust operational efficiency and strategic initiatives.

The company's revenue from operations witnessed a significant uptick, rising by 12.67% year-on-year to reach Rs 5,398.11 crore in Q4FY24, up from Rs 4,790.77 crore in the same period the previous year. Additionally, ACC reported a substantial increase in consolidated sales volume, with a notable rise to 10.4 million tonnes during the quarter, compared to 8.5 million tonnes in the year-ago quarter. For the entire fiscal year, sales volumes escalated to 36.9 million tonnes, marking a growth trajectory from 30.7 million tonnes.

ACC's operational performance also witnessed improvement during the quarter, as evidenced by the significant surge in Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA). The EBITDA soared by 79.5% to Rs 837 crore from Rs 467 crore in the corresponding period, with the EBITDA margin expanding by 570 basis points to 15.5% from 9.8% year-on-year. Furthermore, the EBITDA per tonne in Q4 experienced a substantial increase of 45% to Rs 802, reflecting the company's enhanced operational efficiency and cost optimization measures.

The Board of Directors of ACC has recommended a dividend of Rs 7.50 per equity share of face value of Rs 10 each fully paid up for the Financial Year 2023-24. This dividend declaration is subject to the approval of the shareholders of the company. The record date for the dividend has been fixed as Friday, 14th June 2024, and if approved by the shareholders at the ensuing Annual General Meeting (AGM), the dividend shall be paid on or after 1st July 2024, as announced by ACC.

The shares of ACC demonstrated resilience, ending Thursday's session with minor gains of 0.65% at Rs 2,573 per share on the National Stock Exchange (NSE).