Company paints a bleak near term outlook
ACC, India's second largest cement maker, has posted a decline of 8.7% in its net profit for the quarter ended March, 2014.
The profitability fell to Rs 400 crore compared with Rs 438 crore in the previous corresponding quarter. The company's sales turnover was marginally up at Rs 2,967 crore against Rs 2,906 crore last year.
Sluggish cement demand and high costs dented ACC's profitability.
"In the first quarter of 2014, the industry did not experience any significant improvement in the pace of infrastructure development and general construction," said ACC in a statement.
With no uptrend in the demand for cement, our sales volume was at about the same level as in the corresponding period of previous year, it further added. The total sales volume stood at Rs 6.48 million tonne in the quarter, up a little less than a%age point.
"Our manufacturing costs faced escalations in the cost of our major inputs - namely, coal, fly ash and gypsum," the company said. In its outlook, ACC said that it does not foresee any significant improvement in the cement market in the near term.
On the BSE, ACC's shares had last traded at Rs 1,347.75, up 0.97% on Wednesday.
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