Adani's ACC Sees 20.39% Q4 Profit Drop Amid Rising Costs; Announces Rs 7.50 Dividend

Adani’s ACC Ltd Reports Q4FY25 Results Amid Profit Decline

ACC Ltd, under the ownership of Adani, recently unveiled its financial results for the fourth quarter of FY25. The company’s profit stood at ₹751.03 crore, reflecting a 20.39% drop compared to ₹943.34 crore in the same quarter of FY24. This decline is primarily attributed to rising expenses that overshadowed the increase in sales volumes during this typically strong quarter. However, revenue from operations rose to ₹5,991.67 crore, marking a 12.69% increase from ₹5,316.75 crore in the previous fiscal year’s fourth quarter.

Yearly Performance Overview

For the entire financial year, ACC Ltd reported a remarkable 42% year-on-year growth in total income, reaching an unprecedented ₹24,447 crore. This surge was driven by several factors:

Successful commissioning of new transmission projects
Robust energy sales from its Mumbai and Mundra utilities
Contributions from the smart metering sector

Moreover, the company’s Profit After Tax (PAT) soared by 103% year-on-year, achieving a record ₹2,427 crore for FY25. This impressive growth was bolstered by an increase in EBITDA and a reversal of net deferred tax liabilities amounting to ₹469 crore, largely linked to the divestment of the Dahanu plant within AEML and a regulatory income of ₹148 crore.

Capital Expenditure and Market Activity

In FY25, ACC Ltd doubled its capital expenditure to ₹11,444 crore, compared to ₹5,613 crore in FY24. The financial year also witnessed robust transmission bidding activity reaching ₹1,61,540 crore, with a market share of 28% attributed to AESL.

Kandarp Patel, the CEO of Adani Energy Solutions, expressed pride in the company’s performance for FY25. He stated, “AESL has demonstrated a strong operational and financial capability, excelling in executing complex projects while maintaining financial prudence. As we move into the next fiscal year, our focus will be on enhancing project commissioning, boosting meter installations, and improving operational efficiencies across all business lines.”

Dividend Announcement for Shareholders

In a significant move for its stakeholders, ACC Ltd’s board has proposed a dividend of ₹7.50 per equity share with a face value of ₹10, pending shareholder approval. According to a regulatory filing, the Record Date has been set for June 13, 2025, to determine the eligibility of shareholders for the proposed dividend. If approved during the upcoming Annual General Meeting (AGM), the dividend is expected to be disbursed on or after July 1, 2025, with applicable tax deductions.

In conclusion, while ACC Ltd navigates challenges in profit margins, its substantial growth in overall income and capital expenditure reflects a strong foundation for future success. For more insights on this financial performance, visit our business news section.