Better price realisations boost ACC and Ambuja’s third-quarter revenues

Holcim’s Indian subsidiaries ACC and Ambuja Cements both reported higher revenues for the 3Q14, on the back of a recovery in prices, but sales volumes remained a concern.

ACC, the country’s second-largest producer, saw revenue grew by 9.4 per cent to INR2742 crore, driven primarily by a better pricing environment. Operating EBTIDA rose 32 per cent to INR379.08 crore. Net profit was INR193 crore, up 62 per cent YoY. Sales volumes at 5.62Mt during the September quarter were only 1.4 per cent higher than the same period last year.

Ambuja Cements, meanwhile, reported a 44 per cent jump in net profit for the July-September quarter to INR239 crore, again on better price realisations. The company, which is India's third largest producer, saw net sales increase by 9.2 per cent to INR2188 crore and EBITDA climbed to INR393 crore. However, sales volumes during the three month period declined by 1.1 per cent YoY to 4.67Mt.

Going forward, Ambuja Cements expects better domestic demand growth on the back of expectations of higher GDP growth and improved business sentiment. “The drivers for demand will continue to be housing and infrastructure considering the government’s recent push in this sector,” Ajay Kapur, MD and CEO of the company, said in a statement.