ACC seen posting 12 per cent rise in 1QFY13 net profit

ACC seen posting 12 per cent rise in 1QFY13 net profit
19 July 2012

ACC is likely to post a 12 per cent YoY rise in net profit at INR3.78bn for the first quarter of the current fiscal (FY12-13), according to the average of 22 brokerages' estimates, Moneywire reports.

India’s second-largest producer, in which Holcim holds a 50.3 per cent stake, is expected to post a 13 per cent rise in net sales for the quarter at INR27.25bn. On a QoQ basis, net sales are seen declining five per cent. However, net profit Apr-June is not strictly comparable with the previous quarter as the company took a one-time hit on change in accounting methods during Jan-March.

"Even though April volume growth took a hit due to sand mining ban implemented in various states across northern and southern region, the dip in volumes is controlled led by low base and delayed monsoons in June leading to better offtake," Emkay Global Financial Services said in a pre-earnings note. 
The company will detail its Apr-Jun earnings on Jul 26.     

In line with its peers, ACC is likely to see an uptick in realisation in Apr-Jun as cement prices were high through out the quarter due to strong demand. Sales volumes and prices are typically high in Apr-Jun due to good demand as construction activity across the country remains high ahead of monsoon in June. The southwest monsoon normally hits the Kerala coast on Jun 1 and covers the entire country by mid-July. This year, however, cement demand remained high even in June due to the slow progress of the monsoon.

Published under Cement News

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