Cement maker ACC has reported 33 per cent growth in net profit in the June quarter at ₹326 crore (₹246 crore) on the back of higher volume and better realisations.
Net sales grew 18 per cent to ₹3,329 crore (₹2,827 crore).
The company has announced a dividend of ₹11 a share. Sales volume was up 10 per cent at 6.74 million tonnes (612 mt).
Operational expenses were up 17 per cent at ₹3,507 crore (₹2,986 crore) due to 39 per cent increase in power and fuel bill at ₹685 crore and 35 per cent rise in freight and forwarding cost. Neeraj Akhoury, Managing Director, said the company’s efforts to clarify value propositions and customer-focussed guidance has driven significant commercial performance.
The direction to harness current strengths and develop new competencies has resulted in launch of new brands and improve plant performance, he added.
The company aims to be a preferred partner for projects supporting government priorities on infrastructure, affordable housing and building smart cities, he said.
The company has implemented GST with effect from July 1 and has got its entire vendor and customers GST-ready, thus streamlining operations.
ACC has ramped up production at the newly commissioned integrated plant in Jamul resulting in higher volume in Eastern region. It has launched ACC Suraksha and ACC HPC which has received good response and improved its margin.
The company’s ready-mix concrete sales volume increased six per cent to 0.67 million cubic metres during the quarter on supply to projects in diversified segments and large housing projects in metropolitan areas, it said.
The company expects demand to improve due to good monsoon, launch of smart cities, improvement in urban infrastructure and housing projects. The launch of GST will also get higher volumes for organised cement companies, it said.
The company’s scrip was down 0.08 per cent at ₹1,751 on Monday.