ACC fell 4.39% to Rs 1585 at 10:52 IST on BSE after consolidated net profit rose 38.20% to Rs 345.99 crore on 8.23% increase in net sales to Rs 3,849.63 crore in Q1 March 2019 over Q1 March 2018.
The result was announced after market hours yesterday, 23 April 2019.Meanwhile, the S&P BSE Sensex was up 72.84 points, or 0.19% to 38,637.72.
On the BSE, 37,000 shares were traded in the counter so far compared with average daily volumes of 42,000 shares in the past two weeks. The stock had hit a high of Rs 1629.70 and a low of Rs 1579.60 so far during the day. The stock hit a 52-week high of Rs 1,721.10 on 1 April 2019. The stock hit a 52-week low of Rs 1,255 on 17 July 2018.
"Our three-pronged strategy of customised solutions for consumers, focus on premium products and operational improvements are enhancing our bottom-line and powering ACC's strong growth trajectory. Our ready mix concrete business has demonstrated consistently strong volume growth quarter after quarter. We are also investing in a pipeline of solutions and products including a portfolio of dry mix products," said Neeraj Akhoury, managing director & CEO.
Operating EBITDA for the quarter registered a growth of 8% to Rs 532 crore as against Rs 492 crore during the same quarter of the previous year.
Cement sales volume rose 5.63% to 7.5 million tonnes in Q1 March 2019 over Q1 March 2018.
The prices of fuel and slag rose in the quarter, which were mitigated by market initiatives, sustained cost reduction initiatives viz. material source-mix & fuel mix optimization and productivity improvement measures. Plant capacity utilization improved during the quarter.
Strict controls on third party spend resulted in lower fixed cost as well as Selling General & Administrative expenses (SG&A) on year on year basis.
The company's ready mix concrete business continues to deliver robust growth. Volumes of ready mix concrete grew strongly at 19% and volumes of Value Added Solutions (VAS) also grew significantly in Q1 March 2019 year on year. Eight new plants were commissioned in the quarter bringing the total number of ready mix concrete plants to 80.
In its outlook, ACC said that predictions of a normal monsoon augur well for the rural economy. The government's continued thrust on infrastructure development as well as Housing-for-All initiatives are expected to invigorate the construction sector and stimulate cement demand.
ACC, a member of the LafargeHolcim Group, is one of India's leading producers of cement and ready mixed concrete.
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