Cement manufacturer ACC Ltd reported a 46% jump in profit before tax to Rs 482 Cr, while sales increased 18% in the first quarter to 3,329 Cr.
Net profit rose 33% to 326 cr.
Cement volume rose 10% on year.
“The Company delivered strong volume growth amidst challenging market Conditions,” it said.
“The speedy ramp up of Jamul integrated project, enabled the Company to reap benefits and strengthen its market presence in the Eastern region.”
The company’s two new brands – ACC Suraksha and ACC HPC, launched in the previous quarter, have been well accepted by customers enriching the Company’s product portfolio and increasing margins, it added.
It said it was able to improve productivity & operating efficiencies, including raw material and fuel mix optimization, on a sustainable basis during the quarter. This, it said, mitigated the adverse impact of rising raw material and fuel prices.
In its concrete business, it reported a a 6% growth in sales volume.
It said growth was led by supply to projects in diversified infrastructure segments and large housing projects in the metropolitan areas.
STRONG OUTLOOK
The company said it expects upward trajectory in cement demand supported by the prospects of a normal monsoon.
“Growing momentum in the launching of Smart cities and urban infrastructure development 8 housing projects, together with the implementation of GST will also bring growth opportunities for the sector,” it said.
CEO Neeraj Akhoury said the GST has helped it streamline day-to-day operations.
“The direction for both cement 8 ready-mix businesses has been to harness current strengths and develop new competencies which resulted in the launch of new brands and sharpened the plant performances. We are confident about the prospects for our company,” he added.
ACC is part of the LafargeHolcim group of companies, is among India’s leading manufacturers of cement and ready mixed concrete.