Shares of cement
companies have rallied up to 13% on the BSE in early morning trade after ACC
reported a better-than-expected consolidated net profit of Rs 3.29 billion for the June 2018 quarter. The company had profit of Rs 3.26 billion in year ago quarter.
Net sales during the quarter under review surged 13% at Rs 37.68 billion against Rs 33.29 billion the corresponding quarter of previous year. Analysts, on an average, had expected profit of Rs 2.56 billion on net sales of Rs 36.36 billion for the quarter.
reported operating EBITDA (earnings before interest, taxes, depreciation and amortization) of Rs 6.25 billion against analyst estimate of around Rs 4.55 billion. Cement
volume grew 7% at 7.24 million tonnes as compared to 6.74 million tonnes in previous year quarter.
"We have achieved robust scale in Q2 2018, growing both cement
and the ready mix concrete business by 7% and 22% respectively, as well as delivering a consolidated EBITDA growth of 5% YoY. On the other hand, cost headwinds continue, driven by the rise in input material and logistics costs. The positive impacts of our step change in cost management are favorably impacting our financial results,” said Neeraj Akhoury, Managing Director & CEO.
demand to be positive, driven by the 'Housing for All ' programme, sustained infrastructure spends and rural housing. The company anticipates that cost pressures will remain, largely due to a rise in fuel costs as well other input material costs. The company said it will continue to focus on improving efficiencies.
Among other cement
counters, India Cements, Ambuja Cements, Dalmia Bharat, Orient Cement, Birla Corporation, Grasim Industries, JK Cement, Heidelbergcement India, UltraTech Cement
and Shree Cement
were among notable cement
stocks were up 3% to 9% on the BSE. In comparison, the S&P BSE Sensex was up 0.38% or 139 points at 36,857.