ACC achieves sales growth of 18%

India-based cement producer ACC Ltd has recorded a 32.6 per cent growth in consolidated net profit for the April-June quarter, helped by sales growth.

The LafargeHolcim group company said net profit for the three months to the end of June 2017 totalled INR3.26bn (US$50.7m). Operating EBITDA improved by 38 per cent to INR6.37bn. Pretax profit was up by 19 per cent in the current quarter.

The company achieved an 18 per cent YoY rise in turnover to INR33.29bn during the quarter, noting that the ramp-up of the Jamul plant enabled it to strengthen its market presence in the eastern region of the country. Cement volumes rose by 10.1 per cent YoY to 6.74Mt versus 6.12Mt in the same quarter a year earlier. For the first half of the year, cement volumes increased by 6.9 per cent YoY to 13.33Mt.

Meanwhile, ready-mix concrete volumes increased by six per cent in the quarter through supply to projects in diversified infrastructure segments and large housing projects in metropolitan areas.

On the outlook for the Indian cement sector, the company expects an increase in cement demand supported by the prospects of a  normal monsoon. Growing momentum in the government’s Smart Cities and urban infrastructure development and housing, together with the implementation of the Goods & Sales Tax, will also bring opportunities to the sector, the company added.

Neeraj Akhoury, company managing director and CEO, stated: “ACC has implemented GST with effect from 1 July 2017 and our entire customer and vendor base is GST-ready and registered as required, thus streamlining day-to-day operations.”