Analysts, on an average, had expected net sales of Rs 3,871 crore and net profit of Rs 390 crore for the quarter.
The management said that despite the subdued cement demand, ACC’s strong customer relationships, loyal channel network and range of innovative products have helped the company deliver a robust quarter. The company’s ready mix concrete business grew strongly, aided by eight new ready mix concrete plants in this quarter.
Analysts at Reliance Securities believe higher realisation in Q2CY19 and moderate price correction till date in the current quarter are likely to augur well for the company, and resultantly, its profitability is expected to remain firm in the ensuing quarters.
The brokerage firm maintains ‘buy’ rating on ACC
with a revised target price of Rs 1,870, owing to its strong penetration in rural markets
(around 75-80 per cent trade segment volume) and consistent focus on premium products. Looking ahead, analysts expects its operating performance to remain healthy led by steady realisations and benign cost environment.
At 09:29 am, ACC
was trading 4 per cent higher at Rs 1,623 on the BSE, as compared to 0.22 per cent rise in the S&P BSE Sensex. A combined 1.4 million shares have changed hands on the counter on the NSE and BSE so far.