ACC quarterly volumes lower on weaker demand

ACC reported a decline in sales volumes for the January-March 2015 period due to weaker cement demand from the infrastructure and the general construction sectors, India’s second-largest cement producer said in a statement yesterday.

The Holcim group company said its cement sales in the first three months of 2015 were down by 10.2 per cent to 5.82Mt versus 6.48Mt in the same period of last year.

However, a mix of better realisation on cement sold, as a result of an increase in cement prices in some regions, and cost control helped improve operating performance. Overall operating cost for the cement business rose by 3.6 per cent compared to the previous year.  

The company’s total consolidated turnover in this quarter stood at INR2,885.44 crore compared to INR2,967.14 crore in the first quarter of 2014. Profit after tax in the first quarter of 2015 was INR236.54crore versus INR399.85crore in 1Q14.

Providing a brief outlook, ACC said domestic cement demand is likely to improve in the next two quarters, while the company will continue to focus on performance.