Cement giant ACC’s Q2 net slides by 29% to Rs 82 crore
Cement maker ACC Ltd on Friday said its consolidated net profit fell by 29 per cent to Rs 82 crore for the quarter ended September 30, hit by subdued market conditions and lower realisations.
The firm, a subsidiary of Ambuja Cement and part of the Swiss giant LafargeHolcim, had posted a net profit of Rs 115.21 crore a year-ago, it said in a BSE filing.
Total consolidated income of the company declined by 10 per cent to Rs 2,521.45 crore in July-September quarter as against Rs 2,789.82 crore during the same quarter in 2015.
ACC follows January-December as fiscal year. Its total expenses were lower at Rs 2,403.14 crore from Rs 2,639.99 crore during the period under review. In the September quarter, cement sales of the company fell by 10 per cent to 5.07 million tonnes (mt) against 5.61 mt during the same period in 2015-16.
"Although higher monsoon activity subdued sales during this quarter, it augurs well for demand in the coming months," it said.
Market conditions led to marginally lower realisations as compared to the previous year in all regions except in north India, whereas net selling prices registered an improvement on a sequential basis, ACC added.
On outlook, the firm said: "On the supply-side, we expect our volumes to pick up as the newly commissioned units stabilise, especially in the fast growing eastern region. On the overall demand side, we maintain an optimistic outlook for the economy in the coming months."
In July, the cement maker said its new 2.79 mt per annum clinker plant and 1.10 mt grinding unit at Jamul, Chhattisgarh started commercial production, which will help the firm strengthen its consumer base in Eastern India.
The remaining phase of this project comprising a 1.35 mt cement grinding plant at Sindri in Jharkhand is expected to be commissioned before October-end, it said.