ACC posts 39% rises in profit for June quarter
Consolidated net profit for the period increased by 38.6% to Rs 455.70 crore.
Consolidated net profit for the period increased by 38.6% at Rs 455.70 crore while operating profit increased increased by 25% at Rs 783 crore on account of better realisations and operational efficiencies. Net sales showed an improvement of 7.8% at Rs 4149.8 crore. The company's concrete business sales grew by almost twice the sales of its cement business at 14%.
Total expenses increased by 4% as an increase in fuel cost was partly mitigated by lower cost of raw materials, improvement in operating efficiency and lower fixed cost, the company said in a release.
ACC follows a January-December financial calender.
"ACC made significant progress on its goals in the quarter with strong operating performance including good net sales growth. I am pleased that EBITDA improved significantly on account of better realisations, operational efficiencies and supply chain efficiency improvement," Neeraj Akhoury, MD at ACC said.
"Despite subdued cement demand, our strong customer relationships, loyal channel network and range of innovative products have helped us deliver a robust quarter. Our ready mix concrete business grew strongly aided by eight new ready mix concrete plants in this quarter," Akhoury added.
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, the company said.