ACC records 39% rise in net profit for 2Q19

India’s ACC Ltd (Ambuja Cements) has reported a 38.6 per cent YoY rise in consolidated net profit to INR4.56bn (US$60.26m) for the 2Q19, due to an improvement in operating performance.

Total revenue increased 7.8 per cent to INR41.50bn against INR38.48bn in the year-ago period. EBITDA also advanced 25 per cent to INR7.83bn.

However, the cement sales volume was flat at 7.2Mt. Ready-mix concrete sales were up 10.4 per cent to 0.85Mm³ from 0.77Mm³.

"Despite subdued cement demand, our strong customer relationships, loyal channel network and range of innovative products have helped us deliver a robust quarter," said Neeraj Akhoury, MD and CEO. "Our ready-mix concrete business grew strongly aided by eight new ready-mix concrete plants in this quarter.”

Mr Akhoury also noted that higher fuel prices were partially offset by the lower cost of raw materials, improvement in operating efficiency and lower fixed costs.

"Higher annual budget allocation for infrastructure, affordable housing, upgrades to roads and the government's strong focus on connectivity will drive cement demand and aid growth going forward," said Mr Akhoury.