Cement manufacturer ACC's reported a net profit of Rs 3.29 billion for the quarter ending June 30, flat from its corresponding quarter last year. The company gained from cost management initiatives, even as it was bogged down by continuing macro headwinds.
For the June 2018 ended quarter, ACC reported a corresponding net profit of Rs 3.29 billion, up one per cent from Rs 3.26 billion reported in the same quarter a year ago. The company’s revenue from operations for the June quarter was at Rs 38.48 billion, three percent lower from Rs 39.58 billion reported in the same quarter a year back. Total expenses for the same period also fell three per cent to Rs 33.99 billion against Rs 35.06 billion.
In a Bloomberg poll, four analysts estimated revenue at Rs 39.65 billion and five analysts estimated an adjusted net income of Rs 2.65 billion.
“Cost headwinds continue, driven by the rise in input material and logistics costs. The positive impacts of our step change in cost management are favorably impacting our financial results," said Neeraj Akhoury, managing director & chief executive officer for the company.
ACC saw a healthy growth trend in terms of cement sales volume. For the April-June 2018 period, the company reported cement sales of 7.24 million tonnes, compared with 6.74 million tonnes a year ago. “The company increased its Ready Mix Concrete footprint with the installation of new plants to capitalize on the rapid growth in cities across regions,” the company said in its statement.
On its outlook for the sector, the company in its statement added, it expects demand to remain positive supported by rural housing demand, 'Housing for All programme' and sustained infrastructure spends.