LafargeHolcim’s Indian subsidiaries report 2Q18 growth
Published by Jonathan Rowland,
Consolidated sales volumes at Ambuja Cement and ACC Ltd – LafargeHolcim’s group companies in India – were up in 2Q18. The companies reported sales of 13.61 million t between April and June 2018. This compares to 12.78 million t over the same period last year.
Earnings were however slightly down on last year’s INR12.9 billion at INR12.5 billion. Earnings were hit by rising fuel and energy costs, which were only partially offset by improvements to productivity and efficiency.
Of the total consolidated volumes reported over the quarter, Ambuja Cements Ltd said it had sold 6.37 million tpy between April and June of this year. This compares to 6.05 million tpy over the same period in 2017.
“Better off-take in infrastructure projects, improved sand availability, and increased government spending resulted in steady demand growth trends in 1H18,” the company said.
Over the first six months of the year, the companies reported consolidated sales volumes of 26.94 million t. This compares to 25.4 million t over the first half of 2017.
Demand is expected to continue to grow through the rest of the year on strong rural demand, combined with increase government infrastructure spending and affordable housing development. Fuel, energy, and raw material costs will however continue to weigh down performance in the near term.
"Ambuja is well positioned to benefit from the upsurge in rural demand and the encouraging external environment,” said Ajay Kapur, Managing Director and CEO of Ambuja Cement. “Our consistent customer-connect initiatives, pursuit of operational excellence and continued focus on the retail segment is helping us reduce the impact of rising cost pressures."
Read the article online at: https://www.worldcement.com/indian-subcontinent/01082018/lafargeholcims-indian-subsidiaries-report-2q18-growth/
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