APCL - Anjani Portland

📊 NSE: APCL 🏢 Cement - South India 📅 Last Updated: 12/13/2025 18:20

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations declined 17.4% YoY to INR 661.50 Cr in FY23 and further decreased 5.7% to INR 623.90 Cr in FY24. For H1FY25, revenue stood at INR 185.85 Cr. Segment-wise, Cement revenue was INR 219.08 Cr and Power was INR 14.80 Cr for the period ending September 2024.

Geographic Revenue Split

100% of revenue is concentrated in Southern India, primarily in the states of Telangana and Andhra Pradesh. This concentration exposes the company to regional demand-supply imbalances and pricing pressures in a market characterized by overcapacity.

Profitability Margins

Operating margins have been volatile, dropping from 18.13% in FY22 to 3.24% in FY23 and slightly recovering to 4.73% in FY24. Net Profit Margin was -0.09% in FY25 compared to -0.02% in FY24, reflecting a 279.75% increase in losses due to lower sale realizations.

EBITDA Margin

EBITDA (PBILDT) margin stood at 4.73% in FY24 (INR 29.48 Cr), up from 3.24% in FY23 (INR 21.41 Cr). However, H1FY25 saw a negative PBILDT of INR -10.58 Cr due to operational inefficiencies and high input costs.

Capital Expenditure

Historical CAPEX includes the acquisition of Bhavya Cements Private Limited (BCPL) for approximately INR 460 Cr in FY22, funded through Inter-Corporate Deposits (ICDs) from the parent company.

Credit Rating & Borrowing

CARE Ratings maintains a 'CARE A+; Stable / CARE A1+' rating. Borrowing costs are anchored by Inter-Corporate Deposits from the parent (CCCPL) at an interest rate of 7% per annum.

⚙️ Operational Drivers

Raw Materials

Limestone (sourced from captive mines), Coal (used for kiln and power generation), and Packing Materials (purchased from parent company). Specific cost percentages for each are not disclosed in available documents.

Import Sources

Limestone is sourced locally from captive mines in Suryapet (Telangana) and Tangeda (Andhra Pradesh). Coal is sourced from domestic and international markets, though specific countries are not disclosed.

Key Suppliers

Chettinad Cement Corporation Private Limited (CCCPL) is a primary supplier of clinker, cement, and packing materials, with proposed transactions totaling INR 1,000 Cr for FY26.

Capacity Expansion

Current consolidated installed capacity is 2.44 MTPA (APCL: 1.2 MTPA; BCPL: 1.4 MTPA). No specific future expansion timeline is disclosed, though turnaround is expected via improved utilization of existing assets.

Raw Material Costs

Raw material costs are highly sensitive to coal price volatility. Trade payable turnover ratio decreased 42.98% to 5.62 times in FY25 as the company availed higher credit periods despite lower purchase volumes.

Manufacturing Efficiency

Capacity utilization is currently moderately low due to regional overcapacity. PBILDT per tonne was INR 190 in FY24, significantly lower than the INR 782 per tonne achieved in FY22.

Logistics & Distribution

Distribution is geographically concentrated in Andhra Pradesh and Telangana, which reduces long-haul freight costs but limits market reach to oversupplied zones.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be driven by a turnaround strategy involving the re-commissioning of the WHRS to lower energy costs, increasing capacity utilization from current modest levels, and leveraging the strong brand and financial flexibility of the parent, CCCPL. The company has also proposed a material RPT of INR 1,000 Cr to streamline trading and operations.

Products & Services

Portland Cement (sold in bags) and Clinker.

Brand Portfolio

Anjani Portland Cement.

Market Expansion

The company aims to improve its business profile over the medium term by leveraging CCCPL's strong presence, though specific new target regions are not disclosed.

Market Share & Ranking

The company operates at a modest scale within the highly competitive Southern Indian cement industry.

Strategic Alliances

Strong operational and financial linkages with parent company Chettinad Cement Corporation Private Limited (CCCPL), which holds a 75% stake.

🌍 External Factors

Industry Trends

The Southern India cement industry is evolving toward consolidation and cost-efficiency through WHRS and captive power, as overcapacity (current growth rate in capacity exceeding demand) forces players to compete on cost leadership.

Competitive Landscape

Key competitors include large regional and national players in the Andhra Pradesh and Telangana markets.

Competitive Moat

The moat is derived from strong parentage (CCCPL) and integrated operations (captive mines/power). This is sustainable as long as the parent provides financial flexibility and the company improves its cost structure via WHRS.