Indian cement producer and member of the LafargeHolcim Group, ACC Ltd, has reported a 10% jump in cement volumes in 3Q18 compared to the same period in 2017. The company’s ready-mixed concrete volumes also rose.
Cement volumes benefitted from higher demand, while ready-mixed concrete sales were driven by an increase in the sale of value-added products, as well as the addition of eight new plants across the country. As a result, net sales were up by 10% in the quarter.
“We have delivered healthy volume growth at 10% and revenue growth of 10% year-on-year,” said Neeraj Akhoury, Managing Director and CEO of ACC.
Operating earnings were up 7% as input costs of materials, such as coal, petcoke, diesel, and slag, continued to increase, albeit were partially offset by improvements in operating efficiencies and productivity.
Pre-tax profits were up 16%, however, “demonstrating that our strategy of pursuing profitable growth and productivity improvement is paying off, as is our focus on value-added premium products designed to address specific customer needs” said Akhoury.
The company was also “encouraged by the government’s push on infrastructure and affordable housing, which is driving growth in the cement sector,” concluded Akhoury. The company expects this activity to continue and is “optimistic” the cement demand growth will strengthen through the year.
Read the article online at: https://www.worldcement.com/indian-subcontinent/19102018/acc-reports-10-growth-in-volumes/