ACC Cement Posts Q3 Results

ACC Cement Posts Poor Performance in Q3 Results

ACC Cement's consolidated net profit fell 40.2% for the September 2015 quarter.

Consolidated net profit for Q3 September 2015 was Rs 115.21 crore, a fall of 40.2% over corresponding period last year.
Total income for Q3 September 2015 was Rs 2808.29 crore, a fall of 1.5% over corresponding period last year.
Operating EBITDA (earnings before interest, taxation, depreciation and amortization) for Q3 September 2015 was Rs 313.20 crore, a fall of 17.37% over corresponding period last year.
Cement sales volume for Q3 September 2015 was 5.61 million tonnes, a fall of 0.17% over corresponding period last year.

ACC Cement stated that while sales realization was almost flat, there was a reduction in input and energy costs. ACC Cement further stated that the cement industry witnessed weak offtake of cement in Q3 September 2015 due to subdued construction activity in most of the monsoon season. As a result, the company's cement volumes were correspondingly flat and selling prices were subdued.

ACC in its outlook for the future stated that the pace of economic revival so far had been slower than expected. In the coming few quarters, the company expects trends such as the recent cut in interest rates, softening of energy prices, control of inflation and government's concerted efforts to stimulate investment across several sectors will have a favourable impact on improving the overall economic environment in the country. This can help provide an impetus to construction activity that in turn would open up more opportunities for the growth of cement industry.