ACC delivers a decent performance amid demand and liquidity challenges

The operating performance should see some benefits from decling raw material costs, however demand recovery holds key for significant upside

ACC's better-than-expected September quarter performance is bound to bring cheer, especially in a challenging environment. The demand has remained subdued during the monsoon-impacted seasonally weak quarter. While the monsoon season extended till September, the festival season also kickstarted soon after. The slowdown in real estate and construction activities is adding to ACC woes and a liquidity crunch too is looked as a dampener. In this backdrop, a small two per cent year-on-year dip in volumes to 6.44 Million Tonne (MT) remains a fairly decent performance. Kunal Shah at Yes securities said that he anticipated about 3.8 per cent de-growth.

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