ACC Ltd, India, recorded a 2.8% drop in Q2 sales y-o-y, and a 26% reduction in profit for the same period in comparison with last year. This is attributed to an increase in operational costs affecting the company’s bottomline.
Demand in India has grown at an annual rate of 8 - 9% as a result of the nation’s active construction sector. Plans to increase the country’s capacity by a further 80 – 90 million t is expected to impact upon prices, which have dropped by up to 10% in some areas.
"There is an overcapacity scenario, so if a company wants to maintain market share, they have to bear all cost escalations," said Jinal Joshi, Sector Analyst at Jaypee Capital and continued, “prices will definitely come down in the September quarter.”
Read the article online at: https://www.worldcement.com/asia-pacific-rim/23072010/acc_ltd_profit_and_sales_down_for_q2/