ACC profit falls 8.9% but sales beat estimates
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Mumbai: Cement maker ACC Ltd on Friday reported an 8.9% fall in net profit for the quarter ended 31 March, hurt in part by higher costs.
Consolidated net profit for the quarter fell to Rs211.06 crore from Rs231.70 crore a year earlier. Consolidated sales in the quarter rose 9.1% to Rs3,556.70 crore from Rs3,259.95 crore a year earlier. The company follows a January-December financial year.
The results, however, beat analyst estimates, helped by higher sales. Four analysts polled by Bloomberg had expected ACC to report consolidated net profit of Rs166.4 crore on sales of Rs3152.5 crore.
Revenue in its largest cement business rose 9.3% to Rs3,401.27 crore, helped in part by a price hike, while those in its ready-mix concrete business rose about 10% to Rs285 crore. During the quarter, the company launched two cement products ACC Suraksha and ACC HPC (high performance cement).
The company said its total expenses during the March-ended quarter rose 11.8% to Rs3,404.41 crore. Increased government spending on infrastructure development, housing, roads, railways, and irrigation is likely to boost cement demand in the rest of 2017, ACC said in a statement.
Separately, ACC said it has appointed Surendra Mehta as company secretary and head of compliance with immediate effect. ACC’s shares closed down 1.03% to Rs1,496.75 a share on the BSE on Friday.