Mumbai: ACC Ltd, India’s largest cement maker, on Wednesday beat expectations to announce a 23% increase in profit for the quarter ended 31 March on the back of higher sales volume. A Reuters poll of 15 brokerages had estimated net profit of Rs3.4 billion on net sales of Rs20.5 billion.
ACC, in which Swiss firm Holcim Ltd holds a 46% state, said consolidated profit for the quarter rose to Rs3.99 billion from Rs3.24 billion a year ago. Standalone net profit was Rs4.05 billion.
Consolidated sales rose 14% to Rs21.64 billion, fuelled by demand from rural areas and large constructions.
India’s cement industry, the world’s second largest, has seen demand reviving in the past few months despite a slowing economy, but margins have narrowed on high raw material costs and steady prices.