ACC’s net profit falls 28.9% to Rs81.97 crore in Q3
- Tata Motors boosts cash hoard by 87% to Rs39,760 crore to expand
- Market Live: Sensex falls 200 points, Nifty trades below 9,900 in opening trade
- Rupee opens flat against US dollar
- Why India’s digital push timing is all wrong
- Donald Trump slaps restrictions on North Korea, Venezuela in sweeping new travel ban
Mumbai: Cement maker ACC Ltd on Friday said that its consolidated net profit for the September quarter fell 28.9% from a year ago due to lower sales.
Net profit for the quarter stood at Rs81.97 crore, down from Rs115.21 crore a year ago.
Three Bloomberg analysts estimated that the company would post a net profit of Rs145.40 crore and net sales of Rs2,562.70 crore.
Net sales for the quarter fell 9.8% to Rs2,472.81 crore, against Rs2,740 crore a year ago.
The company said the fall in revenue was due to higher rainfall during the quarter. It, however, expects good demand in the coming months.
Total expenses fell 9% to Rs2,403.14 crore as against Rs2,639.99 crore a year ago. Sales volume for cement fell 9.6% to 5.07 million tonnes from 5.61 million tonnes in the year-ago quarter. However, volume for concrete rose 5.1% to 0.62 million cubic metres.
During the quarter, the company commissioned a 2.79 million tonne clinkering line at Jamul in Chhattisgarh and a 1.1 million tonne cement grinding unit, also at Jamul.
A 1.35 million tonne cement grinding unit at Sindri in Jharkhand is expected to be commissioned by the end of October.
“The ongoing efforts to enhance operational efficiencies and tighten operating costs enabled some visible signs of improvement by way of optimization of fuel mix with higher use of cheaper fuel like pet coke, optimization of the gypsum mix and lower input material costs,” the company said in a notice to BSE.
On the outlook, the company said it expects volumes to pick up when newly commissioned units stabilize, especially in the fast-growing eastern region.
On the overall demand side, it maintained an optimistic outlook for the economy in the coming months.