Cement shares rally as ACC June quarter earnings beat estimates

ACC, India Cements, Ambuja Cements, Dalmia Bharat, Orient Cement, Birla Corporation, Grasim Industries, JK Cement, Heidelbergcement India, UltraTech Cement and Shree Cement were up 3% to 13%.

Shares of cement companies have rallied up to 13% on the BSE in early morning trade after ACC reported a better-than-expected consolidated net profit of Rs 3.29 billion for the June 2018 quarter. The company had profit of Rs 3.26 billion in year ago quarter.

Net sales during the quarter under review surged 13% at Rs 37.68 billion against Rs 33.29 billion the corresponding quarter of previous year. Analysts, on an average, had expected profit of Rs 2.56 billion on net sales of Rs 36.36 billion for the quarter.

ACC reported operating EBITDA (earnings before interest, taxes, depreciation and