Holcim India firms: contrasting results

Holcim India firms: contrasting results
26 April 2010

India-based producers ACC Ltd and Ambuja Cements Ltd, both controlled by Holcim Ltd, released contrasting results on Thursday for the quarter ended 31 March.

Profits at India’s largest cement maker ACC fell 1.6% from the same period in the previous fiscal to Rs392.87 crore as sales fell due to a shortage of railway wagons to transport the product.

Ambuja Cements posted a 38% jump in profit to Rs462 crore, riding on a 7.8% increase in sales from the same period a year ago to Rs1990 crore.

The profit included a one-time gain of Rs72.6 crore from the stake sale in ING Vysya Life Insurance Co Ltd.

"Several of our cement units faced despatch constraints due to non-availability of railway wagons, as a result of which our sales volumes were near flat," ACC said in a statement. Its sales fell 2.6% to 5.58Mt from 5.73Mt.

Analysts, however, said the profit numbers were better than expectations as realisations improved in the quarter. They attributed ACC’s lower consolidated profits to a struggling ready-mix concrete business, which has suffered in the past year due to a slowdown in real estate.
Published under Cement News