ACC has released its 2015 results.
Sales volume for the cement business in 4Q15 witnessed a turnaround, with a 4% improvement over the corresponding period in 2014. Sales volume in FY15 however, decreased by 2.4% due to the temporary closure of mines in the eastern plants of Chaibasa and Bargarh and the general slow pace of the economy earlier in the year. Overall production costs were contained through strong focus on cost management. This was despite increase in costs due to contribution to the District Mineral Foundation in terms of the provisions of the Mines and Minerals Amendment Act 2015, higher rates of royalty on limestone and one-time costs. The cost of energy, raw materials and packing materials were lower than in 2014. A reduction in road freight rates could only partially offset the increase in rail tariffs.
The Ready Mixed Concrete business widened its customer base, broadened its product portfolio and maintained good cost management, enabling a consistent 28% increase in sales volumes.
During the year total consolidated sales turnover was INR11433 crore, compared to INR11480 crore in 2014. Operating EBITDA in 4Q15 increased by 8.9% over 4Q14. Profit after tax was INR588 crore, compared to INR1162 crore the previous year.
The ongoing expansion project at Jamul in Chhattisgarh is nearing completion and is expected to be commissioned in 2Q16.
Although demand in 2015 was low, India’s economy is predicted to recover and ACC remain optimistic about the outlook for the construction and building materials sector over the next few years.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/indian-subcontinent/12022016/acc-2015-results-494/