The Associated Cement Companies (ACC) has reported a 27.3 per cent jump in its despatches for September at 9.87 lakh tonne compared with 7.75 lakh tonne during the same period previous year.
Production during the month stood at 9.83 lakh tonne, up 35.4 per cent against 7.26 lakh tonne in the corresponding period previous year.
The company's despatches during the first half of the current fiscal (April-September) was up 10.31 per cent at 58.29 lakh tonne from 52.84 lakh tonne during the April-September period in the previous year.
Production in the first six months of the current fiscal increased by 10.57 per cent to 58.34 lakh tonne from 52.76 lakh tonne during the first six months of the previous fiscal.
According to analysts, demand generally picks up during this pre-festival period. Besides, an increase in rural income as an outcome of good monsoon this year has contributed to a great extent towards the demand growth.
The recently commissioned Wadi unit in Karnataka was the primary reason for the jump in production.
The company's share price on the Bombay Stock Exchange (BSE) saw an intra-day high of Rs 124.15 compared with its opening of Rs 118.25.
ACC has seen a smart turnaround in its performance, thanks to improved sales realisation in most of its major markets. The company has been selling cement in the north at a premium to competition, due to its strategic alliance with Gujarat Ambuja.
Analysts said the steep decline in prices in the south remained a cause for concern, though in the northern markets the demand situation was likely to improve because of the new highway projects.
Meanwhile, Gujarat Ambuja Cements Ltd, said on Wednesday that its shipments in September rose by 19.13 percent year-on-year to 548,000 tonne. Production rose by 25.32 percent to 579,000 tonne, the company said.
