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Tag: ACC cement

  • ACC’s Q2 growth slows as rising costs slash profit by 39 per cent YoY

    ACC’s Q2 growth slows as rising costs slash profit by 39 per cent YoY

    Mumbai: In a world where owning a home is the ultimate badge of success, the foundation of that dream rests on cement. But what happens when the very industry that builds these aspirations feels the ground shifting beneath its feet?

    ACC Limited, a dominant player in the Indian cement industry, has reported its unaudited financial results for Q2 of FY25, revealing a story of modest growth tempered by significant cost pressures. Despite a 3.9 per cent year-on-year (YoY) increase in revenue, reaching Rs 4,607.98 crore, the company’s net profit after tax dropped sharply by 39 per cent, from Rs 384.29 crore in Q2 FY24 to Rs 233.87 crore this quarter.

    The company’s revenue from operations for the quarter ended 30 September 2024, stood at Rs 4,607.98 crore, an uptick from Rs 4,434.67 crore in the same period last year. This increase can be attributed to strong demand in key markets, especially for cement and ready-mix concrete, though the overall boost was muted compared to earlier quarters. On a half-yearly basis, the total income reached Rs 9,987.38 crore, showing a 0.7 per cent increase over the previous year’s Rs 9,921.88 crore.

    However, operational challenges have taken a toll. Total expenses climbed to Rs 4,443.76 crore, an increase from Rs 4,126.95 crore in Q2 FY24. Key contributors to this rise include a surge in power and fuel costs, which now stand at Rs 772.07 crore, and higher freight and forwarding expenses of Rs 948.95 crore, reflecting rising energy prices and logistical bottlenecks. The company’s cost of materials consumed also saw a notable increase of 17 per cent, indicating an inflationary impact on inputs.

    The jump in costs has had a cascading effect on profitability. ACC Limited’s operating performance further underscores the strain on profitability, with the Q2 FY25 operating EBITDA slipping to Rs 436 crore, translating to a margin of 9.5 per cent, down from Rs 549 crore and a 12.4 per cent margin in Q2 FY24. The half-year figures reveal a similar story, as the H1 FY25 operating EBITDA declined to Rs 1,115 crore with an 11.4 per cent margin, compared to Rs 1,320 crore and a 13.7 per cent margin in the same period last year. This drop reflects the growing cost pressures that continue to weigh on the company’s bottom line, and profit before tax (PBT) has declined significantly to Rs 318.20 crore, compared to Rs 515.58 crore in the previous year. The net profit margin also dropped, reflecting the difficulties in passing on cost increases to consumers amid intense competition.

    Depreciation and amortisation expenses rose to Rs 231.69 crore, while finance costs saw a minor increase, now at Rs 33.29 crore, indicating tighter control over financial liabilities but still exerting pressure on earnings.

    Despite the financial squeeze, ACC continues to prioritise long-term investments. Capital expenditures have been allocated toward upgrading existing facilities and exploring renewable energy sources to mitigate future energy cost risks. The company’s non-current assets, including property, plant, and equipment, stood at Rs 14,252.34 crore as of 30 September 2024.

    ACC is also grappling with external pressures. The ongoing litigation with the Competition Commission of India (CCI), which could result in penalties exceeding Rs 1,100 crore, adds a layer of uncertainty to its financial outlook. The company has set aside provisions for these risks, but the legal shadow continues to loom large.

    With an eye on stabilising costs and improving efficiencies, ACC will need to leverage its market position and operational agility to weather the ongoing financial headwinds. ACC Ltd, whole time director & CEO, Ajay Kapur said, “Our performance in Q2 reinforces our standing as a frontrunner in the cement industry. Our financial results this quarter – fuelled by higher volumes, cost optimisation, increasing efficiencies, and agility – build the momentum for our growth strategy for FY’25 and beyond. Our growth is being driven by robust demand for high-quality cement products across all markets, as well as our continuous efforts to optimise operations and lead on all ESG parameters. Our leadership status is highlighted in our drive for operational excellence supported by innovation, sustainability, and a customer-centric approach. We continue to deliver strong value for our stakeholders as we aim for sustained profitability through our competitive advantage.”

    Key Financial Highlights:

    •  Revenue from operations: Rs 4,607.98 crore (up 3.9 per cent YoY)

    •  Net profit after tax: Rs 233.87 crore (down 39 per cent YoY)

    •  Total income: Rs 9,987.38 crore (up 0.7 per cent YoY for H1)

    •  Power and fuel costs: Rs 772.07 crore (down 13 per cent QoQ)

    •  Freight and forwarding expenses: Rs 948.95 crore (down 13.5 per cent QoQ)

  • Havas Media Mumbai reports growth of 150 per cent in 2020-21

    Havas Media Mumbai reports growth of 150 per cent in 2020-21

    Mumbai: Following the strategic restructuring of Havas Media Group India’s senior management a few months ago, the agency’s Mumbai office has reported a growth of 150 per cent in 2020-21, on the back of over 15 new account wins.

    This includes ACC Cement, Ambuja Cement, ICICI Securities, De Beers Forevermark, Wai Wai, GITAM University, Dr Reddy’s, OZiva, and several others. In addition, the agency has seen tremendous growth on the back of marquee clients like Tata Motors and TVS Eurogrip and their increased media spends even in 2020. In total, Havas Media Mumbai has added a total billing of over Rs 500 crore in 2020-21, the agency shared.

    In the last fifteen months, Havas Media bolstered its senior leadership team in Mumbai. Uday Mohan took over as president & head – North & West India, which includes the Mumbai operations. In addition, Manish Sharma was elevated as executive vice president and head of the Mumbai operations. To further strengthen the strategy teams, Sanchita Roy was named Havas Media Group India strategy head.

    “Despite the market challenges, in the last 15 months we stuck to our task, defined our vision and kept investing in both our talent and product,” said Havas Group India Group CEO Rana Barua. “In 2020, Havas Media Group India has garnered a growth rate of 35 per cent (RECMA June 2020) – the highest among all media agency networks in India.”

    “Our North operations have always been extremely strong, and now it’s heartening to see the same being replicated in other markets,” said Havas Media Group India CEO Mohit Joshi. “We have seen both organic growth and won some fabulous new client wins in the West in the last 15 months resulting in unprecedented growth.”

    “We are firmly aligned to the network’s global philosophy of creating meaningful media and brands. Havas Media Group is growing the business on four pillars – product, people, pitches, and partnerships,” said Uday Mohan, who has led this unprecedented resurgence story of Havas Media in the West. “Built on the media experience [Mx] operating structure, each phase of the Mx process is powered by converged, an identity–based planning platform, which places the audience at the heart of the media planning process and capitalises on media that matters.”

  • Zee Cinema ropes in Pankaj Tripathi for brand integration with ACC Cement

    Zee Cinema ropes in Pankaj Tripathi for brand integration with ACC Cement

    MUMBAI: Zee Cinema has tied up with ACC Cement to highlight the benefits of the latter’s product line – ACC Gold Water Shield Cement. For this, the channel has roped in actor Pankaj Tripathi to educate its viewers about ACC’s unique water-resistant cement formula. His immense talent and down to earth nature epitomise the integration’s messaging of being strong in quality and yet relatable to everyone. This is a continuation to Zee Cinema’s tradition of using the power of entertainment to merge top brands with impactful messaging and help them reach the perfect set of audiences.

    Through engaging content, Tripathi effortlessly lays out the core messaging for the brand – being resilient and reliable. Backed by the onscreen charisma of the Ludo star, there will be a series of creatively crafted communication to highlight the initiative. To personify this message, ACC Cement and Zee Cinema would also co-present movies which resonate with the brand’s offering.

    ZeeL chief growth officer Ashish Sehgal said, “It’s a point of pride to join hands with another company like ACC Cement which has, also, created its own legacy of trust, dependency and superior results. It’s a well-crafted engagement which perfectly reflects the values of the channel, the brand and the key influencer.”

    ACC Cement and Ambuja Cement CMO Ashish Prasad said, “Our campaign aims at inspiring individual home builders to protect their homes by building them with India's first water repellent cement – ACC Gold Water Shield. With products like Gold Water Shield Cement, ACC has always aimed at creating innovative need-based products and communication that connects with its consumers, just like the stories weaved by Pankaj Tripathi and Zee Cinema that connects with the audiences to get relevant message across.”

    Zee Hindi Movies cluster head Ruchir Tiwari added, “We bolstered this integration by connecting the brand messaging directly with our powerful movie line-up and leveraging the perfect influencer to personify the communication.”

    Havas Media Group is the media buying partner for the campaign.

    As a part of this integration, ACC Cements and Zee Cinema will also co-present the movies – world television premiere of The Power on 27 March at 8 pm and Gunjan Saxena: The Kargil Girl on 3 April.

  • Havas Media bags integrated media duties of ACC Cement

    Havas Media bags integrated media duties of ACC Cement

    MUMBAI: Havas Media has bagged the integrated media mandate of ACC Limited. ACC Limited is one of the largest producers of cement and ready mixed concrete in India. Headquartered in Mumbai ACC has set a benchmark in cement and concrete technology and has earned the country's trust and goodwill through its valued product portfolio, ethical business practices, and governance and focus on sustainability. 

    ACC Limited CMO and head new products and services Ashish Prasad said: “We are happy to have Havas Media as a partner in our journey to live by our pioneering and innovation spirit. We are confident that with the very dynamic and fast-changing media scenario, Havas Media with their global experience and expertise will be able to develop a robust strategy for our brand and add impetus to all our marketing initiatives.”

    Havas Group India CEO Rana Barua CEO said: “ACC Cement is synonymous for cement and enjoys high equity in the Indian market. From anticipating customers’ needs to being able to serve them with innovative and differentiated products and solutions, ACC has always been a front-runner. Havas Group’s multi-faceted, integrated, meaningful approach makes us a strong force to reckon with. We are glad to be partnering with such an iconic brand and look forward to a meaningful association.”

    Havas Media Group India managing director Mohit Joshi said: “We are excited to be appointed as a brand partner for a legacy brand like ACC Cement. At play will be Havas Media Group's integrated media skills centered on digital and our 'Meaningful Brands' framework which will together map the brand chart for ACC Cement. We look forward to carving a meaningful brand strategy and taking the brand to greater heights.”

  • 82.5 Creates, ACC launch ‘Karein Kuch Kamaal’ campaign

    82.5 Creates, ACC launch ‘Karein Kuch Kamaal’ campaign

    MUMBAI: ACC, the cement brand from Lafarge Holcim group, has launched its new communication campaign ‘Karein Kuch Kamaal’. Created by 82.5 Communications. The campaign targets the individual home builder who plans to construct his own home.  

    Talking about the new campaign ACC Ltd managing director and CEO Neeraj Akhoury said, “We want to build a new ACC every day and add more cement to our 82 years of trust building. Home building is a celebration of a lifetime; a celebration of a home-builder’s achievements. Our message will resonate far beyond the intended audience and appeal to multiple generations.”

    The Ogilvy Group chief creative officer worldwide Piyush Pandey commented, “Cement is a low involvement category. Even though it is a key ingredient in the making of a building, it remains ‘invisible’ to the end user. I think the campaign created by 82.5 Communications overcomes this problem by helping the consumer engage with the ACC brand in an interesting way.”

    Chief marketing officer and head – new products and services Ashish Prasad said, "ACC as a brand, has always owned equity and trust in the market. Our brand philosophy is to inspire people to do extraordinary things. Our new campaign communicates that we will be keen partners on their journey towards “Karein Kuch Kamaal”. In this context, it is imperative to engage with a new generation of individual home builders."

    82.5 Communications chairman and chief creative officer Sumanto Chattopadhyay said, “Building your own home is a dream come true. But sometimes consumers see the actual process of home building as a challenge. In the new ACC campaign, we have relooked at home-building as a beautiful and joyful process. We roped in international director Anders Forsman to bring a new aesthetic to cement and concrete and to give a magical touch to the portrayal of the construction process.”

    82.5 Communications executive creative director and creative head – Mumbai and Kolkata Mayur Varma added, “Through this campaign, ACC wants to share the euphoria of building a house with every Indian home builder. The men in red are the personification of this sentiment.”