Cement maker ACC Ltd.’s net profit fell nearly 10 percent during the January-March period, its third straight quarterly decline. The bottomline, however, beat estimates on account of higher sales volume.
Net profit fell to Rs 211.50 crore from Rs 234.62 crore in the corresponding quarter last year, the company said in a filing on the stock exchanges. The number however, surpassed the consensus estimates of analysts tracked by Bloomberg, which stood at Rs 163.1 crore.
Revenue (excluding excise duty) snapped a three-quarter decline, growing 7.9 percent to Rs 3,099.66 crore compared to Rs 2872.71 crore in the year-ago period.
The company’s earnings before interest, tax, depreciation and amortization per tonne declined nearly 12.7 percent to Rs 517.86 on a year-on-year basis.
Cement sales volumes stood at 6.6 million tonnes versus 6.36 million tonnes in the corresponding quarter last year, a growth of 4 percent.
Neeraj Akhoury, Managing Director and CEO, ACCAs the Indian economy gains momentum, we are well positioned to reap the benefits of tax reform, investments in infrastructure development and affordable housing.
The company's new capacity at its Jamul plant is now fully commissioned, the filing said. The waning impact of demonetisation and expanded capacities at Jamul and Sindri were the key factors for the growth in volumes.
The government's increased spending on infrastructure development and other schemes announced in the Union Budget are likely to revive demand for cement and concrete this year, the filing added.
ACC Ltd. ended the day of trade at Rs 1,495.50, down 1.03 percent.