ACC soars after Q2 results

ACC rose 12.74% to Rs 1471.60 at 9:20 IST on BSE after consolidated net profit rose 0.77% to Rs 328.74 crore on 13.75% rise in net sales to Rs 3767.90 crore in Q2 June 2018 over Q2 June 2017.

The result was announced after market hours yesterday, 23 July 2018.

Meanwhile, the S&P BSE Sensex was up 107.64 points, or 0.29% to 36,826.24.

On the BSE, 73,000 shares were traded in the counter so far compared with average daily volumes of 28,000 shares in the past two weeks. The stock had hit a high of Rs 1,474.90 and a low of Rs 1,395.10 so far during the day. The stock hit a record high of Rs 1,869 on 13 September 2017. The stock hit a 52-week low of Rs 1,255 on 17 July 2018.

Neeraj Akhoury, managing director & CEO, said that the company has achieved robust scale in Q2 2018, growing both cement and the ready mix concrete business by 7% and 22% respectively, as well as delivering a consolidated EBITDA growth of 5% YoY. On the other hand, cost headwinds continue, driven by the rise in input material and logistics costs. The positive impacts of the company's step change in cost management are favorably impacting its financial results. ACC remains optimistic in its capacity to develop new revenue lines as well as strengthen its performance in both the cement and ready mix business.

In its outlook, ACC said that the economic upswing in 2018 supported by buoyant consumption, a normal monsoon and uptick in rural demand is expected to benefit the construction sector. The company expects cement demand to be positive, driven by the 'Housing for All ' programme, sustained infrastructure spends and rural housing. ACC anticipates that cost pressures will remain, largely due to a rise in fuel costs as well other input material costs. ACC will continue to focus on improving efficiencies.

ACC is one of lndia's leading producer's of cement and ready mix concrete.

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