ACC net profit halves to Rs 55 crore in October-December quarter

ACC, part of global cement giant LafargeHolcim, on Friday posted a sharp fall of 45% in its consolidated net profit for the quarter ended December 2016, at Rs 56 crore compared with Rs 102 crore in the corresponding quarter last year. The cement major's consolidated net sales also dipped 6.1% to Rs 2,672 crore against Rs 2,846 crore.

The demonetisation move by the government took a toll on the demand for cement with the total cement sales volume of ACC slipping over 9% to 5.45 million tonne during the October-December quarter.

In a statement, ACC, said: "The slowdown witnessed after demonetisation is easing and we expect the economy to show growth in the months to come."

In its outlook, the company said that increased government spending on infrastructure development, housing, roads, railways, irrigation and other schemes as announced in the recent Union Budget are expected to further reinvigorate the construction sector.

On the BSE, shares of ACC traded weakly and closed at Rs 1,426.45, down 0.64%.