ACC: Profitability drives Q1 numbers; stock closes flat at Rs 1,591

Healthy volume growth, better realisations helped the company report higher profit per tonne

ACC’s March 2018 quarter performance beat expectations on the profitability front, driven by higher realisation and volume.

During the first quarter, the company’s cement sales volumes grew 7.7 per cent year-on-year, or y-o-y, (2.7 per cent sequentially) to 7.11 million tonnes (mt). ACC follows January-December fiscal year.

The sales volume growth was led by strong demand, mainly in the east where stabilisation of its new commissioned units in Jamul and Sindri helped. The region has also witnessed improving cement prices compared to other areas. Hence, pan-Indian player ACC can surprise with better average realisations. 

Binod Modi at Reliance Securities said unlike expectation of