Cement manufacturer ACC Ltd on Tuesday reported a 10.9 per cent dip in consolidated net profit for the January-March quarter to Rs 350.2 crore, on higher input and transport costs.
“While the company’s operations benefited from better volumes, realisation remained challenged by steep escalations in input costs,” ACC said in a statement.
ACC had reported Rs 392.88 crore net profit for the same quarter in the previous year. “Manufacturing costs rose sharply as a result of increases in cost of energy and raw material like fly ash and slag. Coal became dearer both in domestic and international markets. Transport costs also suffered inflation,” ACC said.
Sales turnover of the company rose to Rs 2,556.2 crore during the January-March quarter of the current year against Rs 2,240.3 crore in the corresponding quarter last year. It sold 6.2 million tonnes of cement during the reporting quarter compared to 5.6 million tonnes in the January-March quarter of last year.
On a consolidated basis, consumption of raw material went up to Rs 470 crore from Rs 334.4 crore and freight charges to Rs 343.3 crore against Rs 274.1 crore. ACC said there was a “healthy outlook” for overall growth in demand for cement during the year.