Companies

ACC Q3 net profit up 15% to Rs 209 cr

PTI New Delhi | Updated on October 17, 2018 Published on October 17, 2018

Over the last few quarters, cement prices have remained stagnant. File Photo   -  The Hindu

Cement maker ACC Ltd on Wednesday reported 15.20 per cent increase in consolidated net profit at Rs 209.14 crore for the third quarter ended September 30, led by volume growth spurred by higher demand.

The company, which follows January-December financial year, had posted a net profit of Rs 181.53 crore during the year-ago period, ACC said in a BSE filing. Total income from operations was up 10.35 per cent to Rs 3,465.92 crore as against Rs 3,140.76 crore in the September quarter of 2017. ACC’s total expenses were at Rs 3,160.38 crore as against Rs 2,877.00 crore.

During the quarter, ACC’s cement sales were up 9.89 per cent to 6.55 million tonne (MT) as against 5.96 MT earlier. “The company grew cement sales volume by 10 per cent during the quarter spurred by higher demand,” said ACC in a post earning statement.

“Despite continuing input cost headwinds, ACC has delivered consistent positive financial performance. We are also encouraged by the government’s push on infrastructure and affordable housing which is driving growth in cement demand,” Neeraj Akhoury, ACC MD & CEO, said.

During the reported quarter, revenue from cement was at Rs 3,184.64 crore, while Ready Mix concrete contributed Rs 303.33 crore. “The company’s Ready Mix concrete sales volumes grew 12 per cent driven by an increase in the sale of value added products and the addition of 8 new plants across the country,” said ACC.

Over the outlook, ACC said it will continue to maintain its focus on operating efficiencies to improve performance. “Demand drivers including growth in affordable and rural housing segments as well as infrastructure projects will remain healthy. We are optimistic that cement demand growth will strengthen in the coming year,” Akhoury said.

Shares of ACC today settled at Rs 1,517.60 per scrip on BSE, down 2.16 per cent from the previous close.

Published on October 17, 2018
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