ACC Ltd posts over 40 percent decline in net profit in Q2

Subdued construction activity during the monsoon season resulted in cement maker ACC Ltd posting an over 40 percent decline in its net profit for 2015-16's second quarter at Rs.115.21 crore as against Rs.192.60 crore made in the same period last year.

However, it maintained production level at 5.61 mt in the review period against 5.62 mt in the same timeframe last year besides keeping its sales turnover flat.

The sales turnover during the quarter ended September 30 stood at Rs.2,740 crore as against Rs. 2,741.87 crore in the corresponding months in 2014.

Its operating EBITDA, however, declined steeply by 17.38 percent at Rs.313.20 crore compared to Rs.379.08 crore in the same period in 2014.

The company said the pace of economic revival is slower than it had anticipated, however, various economic factors will help in improving the business scenario in the country which will boost the real estate segment from which the cement industry can benefit.