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A Holcim Group companies ACC and Ambuja Cements have reported a better performance in the third quarter on the back of higher price realisations. The delay in the onset of monsoon this year also helped them pass on cost increases by way of price hikes.
Ambuja Cements net profit was up 77 per cent at Rs 304 crore (Rs 171 crore), while sales increased 20 per cent to Rs 2,168 crore (Rs 1,806 crore).
Cement output and sales in the third quarter were up 1.3 per cent each at 4.71 million tonnes (mt) and 4.70 mt, respectively. Overall expenses increased 21 per cent at Rs 503 crore.
The impact of the recent hike in diesel price on distribution cost and internal freight movement of clinker isexpected to keep pressure on margins, said Ambuja Cements in a release on Thursday.
On a sequential basis, Ambuja net profit is down 35 per cent.
ACC LOWER OUTPUT
Despite lower production, ACC net profit was up 48 per cent due to improved realisations. Sales increased 14 per cent. Cement production in the September quarter was down five per cent at 5.40 mt against 5.69 mt registered in the same period last year.
Sales volume was depressed against a backdrop of weak demand from the construction sector and prolonged monsoon, said the company. The company’s operational cost had gone up five per cent to Rs 2,145 crore (Rs 2,049 crore) despite lower production.
Raw material cost was up 18 per cent at Rs 314 crore (Rs 266 crore), while power and freight expenses jumped three per cent each to Rs 567 crore (Rs 552 crore) and Rs 489 crore (Rs 472 crore), respectively.
On a sequential basis, net profit was down to Rs 249 crore against Rs 418 crore logged in the June quarter, due to lower output. It produced 6.05 mt in the June quarter.
ACC shares on the BSE were down 0.53 per cent at Rs 1,420, but Ambuja Cements gained 0.20 per cent to Rs 204 on Thursday.
>Suresh.iyengar@thehindu.co.in
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