ACC Q3 net up 52%, but below forecast

Despite high fuel cost which impacted margins, ACC Ltd managed to post a 52% jump in its September quarter profits. The cement maker's year-on-year profit rose to Rs 242, slightly below analysts expectations of Rs 268 crore.

Sales also rose 12% to Rs 2556 crore, YoY. Revenues would have further strengthened if not for prolonged monsoon said the company in a statement and further said that cement dispatches will be robust now.

Cement despatches of the company went down by 5.1% year-on-year to 5.4 million tonnes due to prolonged monsoon and weak demand.

ACC said has not made provision for Rs 1,147 crore fine slapped by the Competition Commission of India (CCI) on the company on cartelization charges..

Cement despatches of the company went down by 5.1% year-on-year to 5.4 million tonnes due to prolonged monsoon and weak demand. The company expects demand to pick up from the current quarter.

"We are also encouraged by some recent positive indications in the national economy and retain a healthy prospect for cement demand in the near term," said the company.

The steep increase announced in the price of diesel during the quarter led to a rise in the cost of road transport and other inputs. The company is keeping rigorous control to mitigate the effect of these inflationary pressures. Simultaneously other strategic initiatives are also being taken for continuous improvements in operations, sales and logistics.

At 14:59 hours IST, the share was trading at Rs 1,424, down 0.26% amid large volumes.

Source: www.moneycontrol.com

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