ACC sees subdued July-Sept volumes and pricing

ACC sees subdued July-Sept volumes and pricing
21 October 2015

LafargeHolcim Indian subsidiary ACC reported flat volumes and subdued selling prices for the July-September 2015 quarter as construction activity and cement demand remained weak during monsoon season.

Turnover during the period stood at INR2740 crore, virtually flat from the same period of last year. Operating EBITDA fell to INR313.20 crore versus INR379.08 crores in July-Sept 2014. While sales remained flat, there was a reduction in energy costs. During the quarter, a provision was also made towards contributing to the District Mineral Foundation and National Mineral Exploration Trust.

Volumes during the quarter remained nearly unchanged at 5.61Mt versus 5.62Mt a year earlier. Over the first nine months of calendar year 2015 were 17.62Mt, down 4.4 per cent from 18.44Mt in CY9M14.

On the outlook for the Indian cement sector, ACC said: “The pace of economic revival so far has been slower than expected. in the coming few quarters, we hope that trends such as the recent cut in interest rates, softening of energy prices, control of inflation and the government’s concerted efforts to stimulate investment across several sectors will have a favourable impact on improving the overall economic environment in the country.”

Published under Cement News

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