Companies

ACC’s profit up 39% on higher realisation

Our Bureau Mumbai | Updated on July 18, 2019 Published on July 18, 2019

ACC has reported that its net profit increased 39 per cent in the June quarter to ₹456 crore, as against ₹329 crore in the same period last year, largely due to higher realisation.

Sales were up eight per cent to ₹4,059 crore (₹3,768 crore).

Sales volume was static at 7.2 million tonne, compared to same period last year. 

Operating EBITDA increased 17 per cent to ₹783 crore.

The cement industry witnessed weak offtake in the quarter due to the slow pace of construction activity, said the company in a statement on Thursday. 

However, cement realisation improved year on year, it added.

Neeraj Akhoury, MD, ACC, said despite the subdued cement demand, the EBITDA improved significantly on account of better realisations, operational efficiencies and improvement in supply-chain efficiency. 

Cost increase on account of higher fuel prices was partially mitigated by lower cost of raw materials, improvement in operating efficiency and lower fixed cost, said the company.

Ready-mix concrete sales increased 14 per cent to ₹366 crore (₹321 crore). 

It also widened its national presence with the addition of eight new plants during the quarter. ACC now has 82 operational ready-mix plants in India.

The recent reduction in interest rates, start of a normal monsoon and the government’s concerted efforts to stimulate investment across several sectors are likely to have a favourable impact on the overall economy, said the company. 

Higher annual budget allocation for infrastructure, affordable housing, upgradation of roads and the government’s strong focus on connectivity will drive cement demand and aid growth going forward, it said.

Shares of the company were up two per cent at ₹1,567 on Thursday

Published on July 18, 2019
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