Indian majors post better than expected profit growth
BL Research Bureau After reporting profit declines for two quarters in a row, cement majors ACC, UltraTech Cement and Ambuja Cements have returned to growth in the March quarter, with results that were above market expectations.
An over 60 per cent decline in international coal prices which trimmed fuel cost, consumption growth of close to 9 per cent and the ensuing price increases of Rs 10-15 per bag helped the companies return to growth in the March quarter.
ACC’s net profit grew 13 per cent helped by a 14 per cent increase in sales and UltraTech Cement’s net profit grew 9 per cent on a 16 per cent increase in sales.
Ambuja Cements’ PAT recorded a comparatively lower 2.4 per cent growth despite a 11.6 per cent growth in sales as its fuel expenses continued on higher slab on inventories of high-cost coal.
Published under Cement News
