Cement maker ACC today reported a 51.89% rise in its consolidated net profit during the second quarter at Rs 242 crore on the back of better realisation.
The company in which Swiss major Holcim has the majority stake, had clocked Rs 159.29 crore net profit during the same quarter a year ago, it said in a statement.
ACC's sales turnover rose to Rs 2,555.90 crore against Rs 2,284.00 crore but volume fell to 5.4 million tonnes from 5.69 million tonnes over the corresponding quarter last year.
"Sales volume was depressed against a backdrop of weak demand from the construction sector and prolonged monsoon," it said.
The rise in net profit and turnover despite lower volume indicate that the company's realisation was higher during the quarter which could be as a result of a combination of factors like reduction in costs of operations and improvement in efficiency among others, an analyst said.
ACC's total expenses rose to Rs 2,263.70 crore compared to Rs 2,194.43 crore a year ago, ACC said adding steep hike in the price of diesel during the quarter led to a rise in the cost of road transport and other inputs.
"The company is keeping rigorous control to mitigate the effect of these inflationary pressures. Simultaneously other strategic initiatives are also being taken for continuous improvements in operations, sales and logistics," it added.
ACC expects demand to revive after the monsoon which would help boost despatches in the months ahead.
"We are also encouraged by some recent positive indications in the national economy and retain a healthy prospect for cement demand in the near term," ACC said.