Two of the largest cement producers in India, ACC Ltd and Ambuja Cements Ltd, have announced disappointing results for 3Q13, ending in September. The companies, owned by Swiss cement giant Holcim, suffered after a decrease in the demand for cement due to difficult macro-economic conditions.
Ambuja 3Q13 results
- Ambuja announced a decrease of 45.40% y/y in 3Q13 earnings.
- Net profit was Rs.1.66 billion for the quarter, falling from Rs.3.04 billion in 3Q12.
- Total income dropped from Rs.216.9 billion in 3Q12 to Rs.201.8 billion in 3Q13, a percentage decrease of 6.99% y/y.
ACC 3Q13 results
- ACC reported a fall of 51.04% y/y in 3Q13 earnings.
- The company’s net profit stood at Rs.1.18 billion, compared to Rs.2.41 billion in 3Q12.
- There was also a small decrease in the company’s total income, which dropped by 0.66% y/y from Rs.25.86 billion in September 2012 to Rs.25.69 billion.
Sluggish market conditions, in an economy growing at its slowest pace for a decade, led to a fall in cement demand and in average Indian cement prices. Industry insiders note that a slowdown in homebuilding and infrastructure projects in India, plus increasing costs due to higher prices of fuel and freight costs are also to blame for the decrease in the cement companies’ profits.
Edited from various sources by Rosalie Starling
Read the article online at: https://www.worldcement.com/asia-pacific-rim/24102013/cement_companies_in-_india_release_3q13_results_330/