In a surprising turn, ACC Q4 results revealed a sharp dip in profit, sending mixed signals to investors and market watchers. Despite a solid growth in revenue, the cement giant’s consolidated net profit slumped 20.4% YoY in Q4 FY25 to ₹751.03 crore. With earnings under pressure but volume and revenue on the rise, let’s break down what these numbers actually mean—and whether now is a good time to buy, sell, or hold ACC shares.
Headline Numbers from ACC Q4 Results
Here’s a quick snapshot of ACC’s Q4 FY25 performance:
| Metric | Q4 FY25 | Q4 FY24 | Change |
|---|---|---|---|
| Consolidated Net Profit | ₹751.03 crore | ₹943.4 crore | 🔻20.4% |
| Revenue from Operations | ₹5,991.67 crore | ₹5,316.75 crore | 🔺12.7% |
| Operating EBITDA | ₹830 crore | — | — |
| EBITDA Margin | 13.7% | — | — |
| Sales Volume | 11.9 million T | ~10.4 million T | 🔺14% |
Why Did ACC’s Profit Drop Despite Higher Revenue?
The fall in ACC’s net profit in Q4 can be tied to rising input costs, particularly energy and raw material expenses, which significantly impacted margins. While the company pushed volumes, those gains didn’t fully translate to bottom-line growth. The EBITDA margin, while decent at 13.7%, is underwhelming given the scale of operations.
Read More-Tech Mahindra Share Price Rallies 2% Pre-Q4 Results: What Analysts Are Saying
Dividend Announcement: A Sign of Stability?
Despite the dip in profits, the board proposed a dividend of ₹7.50 per share, in line with last year. This consistency suggests the company’s long-term fundamentals remain solid, and it has confidence in its capital expenditure and growth plans.
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Pros and Cons for Investors
Pros
- Revenue Growth: Double-digit growth (12.7%) shows strong operational performance.
- Volume Surge: Highest-ever quarterly sales at 11.9 million tonnes—indicative of market demand.
- Dividend Payout Maintained: Positive sign amid profit pressure.
Cons
- Profit Slump: A 20.4% YoY fall is hard to ignore—raises questions on cost control.
- Sequential Decline: Profits were down 31.2% compared to the previous quarter.
- Margin Pressure: Rising costs may continue to hurt in the short term.
Expert Analysis: Should You Buy, Sell, or Hold?
Most analysts recommend a cautious hold strategy on ACC for now. While the topline numbers look promising, the dip in profitability is a concern. If you’re a long-term investor banking on India’s infrastructure and real estate boom, holding ACC might be a smart move. For short-term traders, the current volatility could be risky.
Short-Term vs. Long-Term Outlook
Short-Term:
- Stock may stay volatile due to margin pressure and investor sentiment post-results.
- Cement sector may remain under pressure due to rising fuel prices.
Long-Term:
- ACC’s aggressive push in volumes and consistent dividend payout signal long-term strength.
- India’s infrastructure development could support cement demand for the next 5–10 years.
Final Word: ACC’s Q4 earnings paint a mixed picture. While the growth in revenue and sales volumes is promising, declining profits and margin pressure are concerns. Long-term investors might still find value, but short-term volatility is something to be cautious about.
News Source-Mint
