ACC Q3 net tumbles 29% at Rs 81 cr as sales slump

ACC Q3 net tumbles 29% at Rs 81 cr as sales slump

21/10/2016 16:04

Cement manufacturer ACC on Friday reported a drop of 29 per cent in its consolidated net profit at Rs 81.07 crore for the third quarter ended September 30, 2016.

The company had clocked a consolidated net profit of Rs 115.21 crore in the year-ago period, ACC said in a filing to the Bombay Stock Exchange.

The consolidated net sales from operations declined by 9.75 per cent to Rs 2,472.81 crore during Q3 FY17 over Rs 2,740.00 crore in the corresponding period last fiscal.

During the quarter under review, Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 12.6 percent to Rs 273.70 crore from 313.20 crore during the same quarter last year.

In Q3FY17, cement sales volume stood at 5.07 million tonnes, down 9.6 percent compared with 5.61 million tonnes in corresponding period of last fiscal.

Commenting on Q3 earnings, the company said, “Although higher monsoon activity led to subdued sales during this quarter, it augurs well for demand in the coming months. Market conditions led to marginally lower realisations as compared to the previous year in all regions except in the north whereas net selling prices registered an improvement on a sequential basis.”

Looking forward, the company said that on the supply side it expects the volumes to pick up as the newly commissioned units stabilize, especially in the fast growing eastern region.

Weighed down by Q3 earnings, shares of company ended Friday’s trade at Rs. 1562.05, down 3.10 per cent, from previous close on BSE.

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