Economy & Market

ACC, Ambuja profits cave in on weak demand

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Weak cement prices in a seasonally strong quarter hit profitability at ACC and Ambuja Cements Ltd in the three months ended March. Both registered a marginal drop in volumes from a year ago. Realization per tonne was flat as well. ACC’s net revenues fell by about 3 per cent from a year ago to Rs.2,911.1 crore. Ambuja’s fell 3.5 per cent to Rs.2,544.8 crore. Moreover, lower raw material costs did not offer any respite as expenses on other fronts spiralled. For instance, transport and freight costs, which comprise nearly one-fifth of total expenses, rose by about 2-3 percentage points for both ACC and Ambuja.. Both firms also took a beating with a surge in other expenses, partly due to higher royalty fees paid to their parent Holcim

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