ACC's strong operating performance lifts sentiment amid Covid-19 lockdown

Despite the lockdown impacting volumes, lower costs drove earnings and beat expectations

Even as the volume pressure was evident on ACC’s March quarter performance and realisations disappointed, cost control pulled up operating performance. 

With both the operating and net profit ahead of estimates, the ACC stock gained more than 8 per cent on Wednesday.

With the lockdown in progress, cement sales at 6.56 million tonnes (mt) declined 12 per cent year-on-year (YoY) and 16 per cent sequentially, in the March quarter (Q1; company follows January – December accounting year).

Price hikes by cement players at the start of the March quarter