Mumbai (Maharashtra) [India], July 19 (ANI): Cement manufacturer ACC has reported 38.61 per cent rise in its consolidated net profit at Rs 455.68 crore for the quarter ended June 30 due to improvement in operating performance and sales.
Total revenue from operations was up 7.83 per cent to Rs 4,149.82 crore during the quarter as against Rs 3,848.25 crore in the year-ago period. ACC follows January to December as the financial year.
Operating earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter registered year-on-year growth of 25 per cent to Rs 783 crore.
"Despite subdued cement demand, our strong customer relationships, loyal channel network and range of innovative products have helped us deliver a robust quarter," said Managing Director and CEO Neeraj Akhoury.
"Our ready mix concrete business grew strongly aided by eight new ready mix concrete plants in this quarter," he said in a statement.
During Q2 CY19, cement sales volume was flat at 7.2 million tonnes. However, the sales volume of ready mix concrete was up 10.38 per cent to 0.85 million cubic metres from 0.77 million cubic metres earlier.
Akhoury said the cost increase on account of higher fuel prices was partly mitigated by lower cost of raw materials, improvement in operating efficiency and lower fixed cost.
ACC widened its national presence with the addition of eight new plants during the quarter. The company ACC now has 82 operational ready mix plants in India.
Recent developments such as a reduction in interest rates, start of a normal monsoon and the government's concerted efforts to stimulate investment across several sectors are likely to have a favourable impact on improving the overall economic environment in the country, said Akhoury.
"Higher annual budget allocation for infrastructure, affordable housing, upgradation of roads and the government's strong focus on connectivity will drive cement demand and aid growth going forward," he said. (ANI)