Economy & Market

ACC net profit rises on firm cement price

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The consolidated net profit of ACC rose a whopping 84.6 percent y-o-y during the third quarter of CY11 as it enjoyed a strong price realisations, especially in the southern and western regions during the September 2011 quarter.In contrast, the company had reported a fall in its net profit in the first and second quarters of CY11, on a y-o-y basis owing to higher costs. ACC’s total cement capacity amounted to nearly 30 million tonne at the end of CY10, boosted by additional capacity brought on stream late that year in Maharashtra and Karnataka. The benefit of this new capacity would also be reflected in the company’s results over the next few quarters.With the monsoon season broadly over in most parts of the country (except the southern region), cement prices have started to rise in several regions, on expectations of a revival in construction activity. However, key user industries for cement like the real estate sector are facing a tough operating environment, given that there are no signs of easing in home finance rates.

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