ACC announces 19% net profit increase in 1Q18

ACC announces 19% net profit increase in 1Q18
20 April 2018

India's ACC has announced a 19 per cent YoY increase in net profit to INR2.5bn (US$38m) for the 1Q18. The company has attributed this positive performance to increased volumes and net sales, despite rising costs, according to The Economic Times. EBITDA rose 18 per cent to INR4.92bn, while net sales surged 14 per cent to INR35.57bn. 

"A rise in energy slag prices adversely impacted operating costs during the current quarter as compared to the same quarter a year ago," said the company in a press release. "Despite a challenging external environment, cost savings were achieved through sustained operational efficiencies, optimisation and robust control on fixed costs."

The cost of materials increased 24 per cent, freight costs advanced 21 per cent and fuel costs saw a hike of 16 per cent.

"ACC’s financial performance in 1Q, ended 31 March 2018, reflects strong volume growth momentum powered by our focused approach to innovation, operational improvements, and customised solutions for consumers. We are on a clear growth trajectory to deliver strong returns to our shareholders," said Neeraj Akhoury, managing director, ACC.

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