ACC advances after robust Q2 result

ACC was up 4% to Rs 1,629.85 at 09:20 IST on BSE after consolidated net profit rose 38.62% to Rs 455.64 crore on 8.33% increase in total income to Rs 4206.18 crore in Q2 June 2019 over Q2 June 2018.

The result was announced after market hours yesterday, 18 July 2019.

Meanwhile, the S&P BSE Sensex was up by 135.23 points or 0.35% to 39,032.69.

On the BSE, 28,000 shares were traded in the counter so far compared with average daily volumes of 42,000 shares in the past two weeks. The stock had hit a high of Rs 1,647.3 and a low of Rs 1,628 so far during the day. It hit a 52-week high of Rs 1,768.4 on 28 May 2019 and a 52-week low of Rs 1,265 on 19 July 2018.

ACC said the cement industry witnessed weak off-take in Q2 June 2019 due to the slow pace of construction activity. Cost increase on account of higher fuel prices year on year, was partly mitigated by lower cost of raw materials, improvement in operating efficiency and lower fixed cost. Operating EBITDA rose 25% to Rs 783 crore in Q2 June 2019 over Q2 June 2018.

Neeraj Akhoury, Managing Director & CEO, ACC said despite subdued cement demand, the company's strong customer relationships, loyal channel network and range of innovative products helped in delivering a robust quarter. The company's ready mix concrete business grew strongly aided by eight new ready mix concrete plants in this quarter.

In its outlook, ACC said that 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.

ACC is India's foremost manufacturer of cement and concrete. The company is engaged in the manufacture of cement and ready-mixed concrete. The company manufactures a range of portland cement for general construction and special applications. In addition, they also offer two products namely, bulk cement and ready mix concrete.

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