ACC Q1 net down 4%

Lower realisations dented company's profits despite 9% rise in cement sales

ACC, part of the Swiss cement giant Holcim, has posted a decline of four per cent in its consolidated net profit at Rs 227 crore for the March quarter. It’s consolidated net sales for the period grew marginally to Rs 2,927 crore, up 1.5 per cent.

The 30-million tonne (mt) cement company sold 6.36 mt  during the quarter against 5.82 mt, registering a growth of 9.27 per cent — the highest in past two years.

The company follows calendar year as its accounting year. “With construction activity picking up, especially in infrastructure and housing sectors during the quarter, the demand for cement registered a perceptible increase as compared to the slow pace witnessed in the previous year,” said ACC.

Though volume pick-up gave a boost to company's sales however lower realistations dented ACC's profitability.

"Better offtakes enabled the company to achieve a growth of 9 per cent. Realisations in the quarter were 8 per cent down year-on-year," the company added.

In its outlook, the company is expecting acceleration in government's investment in infrastructure and other urban projects. "..the forecast of an above normal monsoon this year are all trends that portend well for heightened construction activity and in turn for an increase in the demand for both cement and concrete," it added.

On the BSE, shares of ACC were traded at Rs 1,435, up 0.4 per cent at 1454 IST.