ACC's Q1 2017 net profit down 9%

Cement and ready mixed concrete producer ACC on Friday reported a decline of 9.05 per cent in its consolidated net profit for the first quarter (Q1) of 2017.

The company's consolidated net profit decreased to Rs 211 crore from Rs 232 crore reported during the first quarter of last year.

In contrast, the consolidated sales (net of excise duty) rose 7.76 per cent to Rs 3,108 crore during January-March quarter of 2017 from Rs 2,884 earned during the corresponding period of last year.

"With the launch of two new products this quarter, we continue to build our specialised building products segment, while investing in new capacity at our Jamul plant which is now fully commissioned and able to meet customer needs in the eastern region of the country," Neeraj Akhoury, Managing Director and Chief Executive Officer, ACC was quoted as saying in a statement.

"As the Indian economy gains momentum, we are well positioned to reap the benefits of tax reform, and investments in infrastructure development and affordable housing."

According to the company, cost of petcoke, coal, packing materials and freight hardened.

"There was a shortfall in regular availability of flyash, a part of which was procured over longer leads entailing higher transportation costs," the statement said.

Segment-wise, ACC pointed out that its cement volumes during the first quarter showed growth of four per cent (YoY) as the impact of demonetisation declined and higher sales from the expanded capacity at Jamul and Sindri plant.

"The ready mix concrete volume grew eight per cent YoY driven by a steady increase in the sale of value-added products," the statement said.

"In addition to residential and commercial markets, the ready mix business has contributed to nation-building infrastructure projects including metro railways in Mumbai, Delhi, Chennai and Nagpur besides power plants and road projects," the statement added.

--IANS

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