ACC slips in volatile trade after declaring Q2 result

ACC was off 0.54% to Rs 1,669 at 15:14 IST on BSE after consolidated net profit rose 79.16% to Rs 239.12 crore on 3.25% fall in total income from operations (net) to Rs 2917.23 crore in Q2 June 2016 over Q2 June 2015.

The result was announced during market hours today, 26 July 2016.

Meanwhile, the S&P BSE Sensex was down 68.55 points or 0.24% at 28,026.79

On BSE, so far 79,078 shares were traded in the counter as against average daily volume of 22,075 shares in the past one quarter. The stock was volatile. The stock rose as much as 2% at the day's high of Rs 1,711.75 so far during the day. The stock fell as much as 1.01% at the day's low of Rs 1,661 so far during the day. The stock had hit a 52-week high of Rs 1,716.75 on 21 July 2016. The stock had hit a 52-week low of Rs 1,173.25 on 29 February 2016. The stock had outperformed the market over the past one month till 25 July 2016, rising 7.29% compared with Sensex's 6.43% rise. The scrip also outperformed the market in past one quarter, gaining 17.95% as against Sensex's 9.41% rise.

The large-cap company has equity capital of Rs 187.79 crore. Face value per share is Rs 10.

ACC's consolidated operating earnings before interest, tax, depreciation and amortization (EBITDA) rose 36.5% to Rs 457.56 crore in Q2 June 2016 over Q2 June 2015. Cement sales volumes fell 1.3% to 6.12 million tonnes in Q2 June 2016 over Q2 June 2015 mainly due to muted demand in some markets.

ACC said that commercial production of clinker from the new 9,000 tpd kiln at Jamul commenced from 19 July 2016. The cement grinding units linked to this project located at Jamul and Sindri are scheduled to be commissioned in Q3 September 2016.

In its outlook, ACC that the company will continue to maintain its focus on reducing costs. The company expects that stabilization of the Jamul Integrated Project will help in increasing the company's presence in the fast growing East markets, as well as the overall profitability, ACC said. Prospects of a good monsoon, coupled with the impetus from government's thrust on infrastructure development, housing and other mega projects are also factors that are expected to have a positive impact on the overall momentum of construction activity in the caning quarters, the company said.

ACC is a manufacturer of cement and ready mixed concrete with a countrywide network of factories and sales offices.

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