ACC reports 40% fall in net profit

India’s ACC (LafargeHolcim) has reported a 40 per cent YoY decline in consolidated net profit to INR2.71bn (US$36.2m) in the first quarter of FY20-21, compared to INR4.55bn in the year-ago period. Total sales also fell 38 per cent YoY to INR25.2bn from INR40.59bn in the 1QFY19-20.

Standalone revenue was down 37.3 per cent YoY in the June 2020 quarter, decreasing to INR26bn from INR41.49bn last year.

The company’s cement business saw revenue slip 33 per cent YoY to INR25.5bn, while sales volumes fell 33 per cent to 4.8Mt.

"Despite the uncertainty surrounding COVID-19 and lockdown restrictions, the company believes that our country with its strong record of growth and sound economic policies will rebound on its growth trajectory. The recent initiatives by the government will help resurgence of rural demand including affordable housing. This coupled with the government impetus on infrastructure will play a strong role in driving cement demand," said the company in a statement.