ACC net up 85% on strong sales

ACC net up 85% on strong sales
24 July 2009

ACC has posted a better-than-expected 85% rise in net profit in the June quarter on strong sales volumes, better price realisation and improved cost management.

The company, controlled by the Swiss cement giant Holcim, has posted consolidated net profit of Rs 471 crore in the June quarter compared to Rs 255 crore in a year-ago period.

The ACC board on Thursday announced interim dividend of Rs 10 per share. The ACC stock gained 5.80% to close at Rs 854.65 in a strong Mumbai market on Thursday.

Managing director Sumit Banerjee told ET that the coming quarters would see a healthy demand for cement due to different infrastructure activities.

‘The industry has grown by nearly 11% in the first six months of this calendar year. While significant new capacity is expected to be added in the coming months, demand from the housing, retail and infrastructure sectors is expected to remain firm in the foreseeable future,” he added.

However, he cautioned that the prices of major raw materials including coal might rebound from their recent lows because of an anticipated uptrend in the commodity business cycle.

Published under Cement News