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Cement manufacturer ACC Ltd today reported a whopping 62% rise in its consolidated net profit for July-September quarter at Rs 192.60 crore on better cost management and improved realisations.
The company, which follows January-December as accounting year in line with its majority stakeholder Holcim, had reported Rs 118.90 crore net profit in the same quarter last year.
"Profitability during the quarter showed an improvement as a result of our customer excellence programme and better cost management, particularly with regard to distribution costs and optimised sourcing of inputs and improved realisations," ACC Ltd said in a statement.
Sales turnover of the company, with prospects of economy gradually picking up leaving a positive impact on cement demand, rose to 2,741.87 crore from Rs 2,505.44 crore during the same quarter a year earlier.
Sales volume increased though marginally to 5.62 million tonnes (MT) during the July-September quarter of the current year compared to 5.54 MT during the same quarter last year.
Operating EBITDA rose to Rs 379 crore against Rs 286.56 crore in the same period of the previous year, it said.
"With prospects of the economy gradually picking up, the infrastructure, housing and construction sectors are expected to register growth in the near term which will have a positive impact on demand for cement," ACC Ltd said.
The company said its subsidiary ACC Mineral Resources had participated in four 49:51 joint ventures with Madhya Pradesh State Mining Corporation (MPSMCL) for development and mining of four coal blocks allocated to MPSMCL.
These blocks now stand cancelled following cancellation of blocks by the Supreme Court last month. ACC Ltd said the financial loss or operational impact as a result, if any, would not be significant.
