ACC 2Q benefits from rise in cement realisations

ACC 2Q benefits from rise in cement realisations
14 August 2009

ACC’s result for the June ’09 quarter was better than expectations. The company benefited from a 13% YoY rise in cement realisations per tonne, coupled with marginally higher dispatches. The stock jumped 5.80 % to Rs 854.65 on the BSE Thursday, compared with 2.61 % rise in the Sensex.

Strong realisations helped ACC’s net profit for the June ’09 quarter increase by an impressive 84.6% YoY to Rs 470.9 crore

The company’s consolidated income rose 14.2% YoY to Rs 2,208.2 crore in the last quarter, while its operating profit margin improved 1,260 basis points YoY to 34.7%.

The company’s cement dispatches were 5.42Mt in the first quarter of FY10, a rise of 1.9% YoY. In addition, its realizations improved by an estimated 13% YoY to Rs 3,840/t in the last quarter.

ACC, an all-India player, benefited from strong demand conditions in the June 09 quarter from the government-funded infrastructure projects, coupled with housing projects in rural and smaller towns.
Published under Cement News