ACC net profit more than doubled in the September quarter of Rs 182 crore (Rs 90 crore) on the back of lower base, restocking of cement by dealers post demonetisation and better realisation.

Revenue from operations were up 10 per cent at Rs 3,117 crore (Rs 2843 crore).

This strong result has been achieved through an increased focus on premium products.

Neeraj Akhoury, Managing Director & CEO,ACC said that the company is working with the LafargeHolcim group to adopt the best global practices on commercial transformation and cost management.

“Cement sales of the company increased 18 per cent during the quarter. The stabilization of Jamul and Sindri plant capacities have contributed to this growth. Premium product volumes grew by 18 per cent YoY,” the company said.

Despite rising cost, the company’s focus on operational efficiencies helped to rationalise cost and add to bottom lines. “Higher usage of imported and auctioned coal, caused by the limited availability of linkage coal, adversely impacted fuel costs. However, improved raw material mix and fuel mix optimisation helped to partially neutralise the adverse cost impact,” it said.

Ready Mixed Concrete business maintained a steady growth trend of 11 per cent over the same quarter of the previous year largely through supplies to diversified customer segments.

Three new commercial plants in Mumbai, Pune and Jharkhand were commissioned duringthe quarter. ACC now has 57 operational RMC plants in India and concrete is being supplied to diversified customer segments such as high-mid Rise, individual home buyers (IHB), Metro, power, road projects, industrial segments and more.

The company expects demand for cement and related products will stay on course in the coming quarter spurred by the government’s increased spending on infrastructure, particularly roads, highways and affordable housing.

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