ACC profit rises 79% to Rs239 crore in June quarter
- Venezuela gives Russia’s Rosneft gas field concessions
- RIL, HDFC Bank contribute over one-third of Sensex’s market cap gain in 2017
- Himachal, Gujarat election results tomorrow a test for Modi, Rahul
- Much ado about ‘bail-in’ and FRDI Bill
- Himachal, Gujarat election results may power Sensex, Nifty to record highs
New Delhi: Cement maker ACC Ltd on Tuesday reported a 79% growth in consolidated net profit at Rs.239.12 crore for the second quarter ended 30 June. The firm, which follows the January-December fiscal year, had clocked a net profit of Rs.133.46 crore in the year-ago period, it said in a BSE filing. However, total consolidated income fell by 3% to Rs.2,917.26 crore in April-June quarter of 2016 as against Rs.3,015.29 crore during the same quarter in 2015.
The firm, part of the Swiss cement giant LafargeHolcim, reported a 1.3% decline in cement sales to 6.12 million tonnes (MT) during the June quarter against 6.2 MT in the year-ago period due to muted demand in some markets, it said.
The company also managed to reduce its overall costs by 9%. “Optimization of fuel mix through higher usage of petcoke, lower cost of input materials viz slag, fly ash and gypsum and gypsum mix optimisation helped in lowering production costs,” the cement maker said. Proactive measures taken to reduce lead distances and road freight also helped in overall logistics cost reduction, ACC added.
The firm’s total expenses fell to Rs.2,603.18 crore in April-June 2016 from Rs.2,848.46 crore during the same period last year. ACC also announced that its board has approved payment of an interim dividend of Rs.11 per share of Rs.10 each. An interim dividend of Rs.11 per share of Rs.10 each was also paid in 2015. On outlook, it said: “Company will continue to maintain its focus on cost reduction. We expect that stabilization of the Jamul integrated project will help in increasing the company’s presence in the fast growing east markets as well as overall profitability.”
Last week, ACC announced that its new 2.79 million tonnes per annum clinker plant at Jamul, Chhattisgarh has started commercial production. It also said that two new cement grinding facilities, one each at Jamul and Sindri in Jharkhand, which form part of this integrated project, are expected to be commissioned in September quarter of 2016.
“Prospects of a good monsoon, coupled with the impetus from government’s thrust on infrastructure development, housing and other mega projects are also factors that are expected to have a positive impact on the overall momentum of construction activity in coming quarters,” it added.