Indian cement maker, ACC, part of the LafargeHolcim Group, has announced positive quarterly results for the period between July and September. Net profit was up 99% year-on-year at INR1.78 billion, beating the Bloomberg consensus estimate of INR1.65 billion.
“This strong result has been achieved through an increased focus on premium products, improved customer service levels and by relentlessly driving productivity and cost optimisation,” said Neeraj Akhoury, Managing Director and CEO of ACC.
Sales volumes were up 18% to 5.96 million t, compared to 5.07 million t in 2016. This takes the company’s sales to 19.29 million t so far this year, up from 17.54 million t in the first nine months of last year. Premium product sales were also up 18% year on year.
The growth in sales volumes was partly attributed to the “stabilisation of the Jamul and Sindri plant capacities”.
The company also touted an improvement in its productivity and operating efficiencies, “despite rising costs from higher slag prices and fuel costs.”
ACC used a higher amount of imported and auctioned coal over the quarter, as a result of “limited availability” of supply from its coal linkage agreements. The use of these coals drove up fuel costs, although improved raw material mix and fuel mix optimisation helped to mitigate some of the cost impact.
The company expects the outlook to “stay favourable in the coming quarter, spurred by the government’s increasing spending on infrastructure, particularly roads, highways, and affordable housing.”
Read the article online at: https://www.worldcement.com/indian-subcontinent/18102017/acc-reports-positive-3q17-results/
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