ACC reports 52 per cent rise in 2QFY13 net profit

ACC Ltd reported the growth of 52 per cent in its consolidated net profit for the second quarter of FY12-13 and expects its sales volume to increase in the next quarter as the monsoon season has ended.

Net profit during the July-September period was INR2.42bn rupees (US$45m) against INR1.59bn a year ago. Net sales rose 12 per cent to INR25.56bn during July-September 2012 period but sales volume declined five per cent to 5.4Mt.

The steep increase announced in the price of diesel during the quarter led to a rise in the cost of road transport and other inputs. The company said it is keeping rigorous control to mitigate the effect of these inflationary pressures.

The company said it has been expecting the demand to pick up post monsoon, which will boost despatches in the months ahead. “Post monsoon we expect that demand for cement will revive and help boost despatches in the months ahead. We are also encouraged by some recent positive indications in the national economy and retain a healthy prospect for cement demand in the near term.” said ACC in a statement.