ACC and Ambuja post diverging results, India

Holcim’s two Indian interests have posted contrasting results for the first quarter of 2014, with ACC’s profit down nine per cent while Ambuja Cement’s net climbs 6.6 per cent.

Ambuja Cements reported a net profit of INR5.20bn (US$85.2m) for the first quarter ended March 31, compared with INR4.88bn a year earlier. Sales volume increased two per cent to 6.06Mt.

Ambuja's net profit was helped after other income rose by 53.2 per cent to INR1.32bn from a year earlier, according to a company filing.

Going forward, the company expects a revival in the economy after ongoing elections ending on 16 May 2014. Although macroeconomic condition remains challenging, construction activity is expected to pick up pace after elections," the company, India's third-largest cement maker, said in a statement late on Thursday.

ACC, on the other hand, saw its March-quarter net profit slide to INR3.99bn. Sales volume increased slightly to 6.48Mt (6.42Mt in the corresponding perid of last year). The company attributed the flattish sales growth to slowdown in execution of infrastructure and real estate projects.

The company maintains a more cautious approach on the outlook for domestic demand than its sister company, stating: “While we do not foresee any significant improvement in the cement market in the near term, we will continue to cut costs and undertake customer excellence programmes to enhance sales realisations and improve margins.”