45 pc dip in consolidated net profit for ACC

Mumbai: Cement manufacturer ACC today reported a 45 per cent decline in consolidated net profit for the fourth quarter ended December 31, 2016 at Rs 56 crore on the back of a decrease in revenues. The company, which follows January-December as fiscal year, had reported a net profit of Rs 102 crore in the corresponding quarter last fiscal, a statement issued here said. Its net sales for the quarter stood at Rs 2672 crore against Rs 2846 crore in Q4 2016, registering a decline of 6.11 per cent. For the year, ACC reported a PAT of Rs 604 crore and revenues of Rs 10,946 crore against Rs 588 crore and Rs 11,433 crore in 2015, respectively.

"The highlight of the year was strong cost saving measures, especially on fuel flexibility and raw materials focusing on our high quality, high performance product portfolio played an important role in the overall performance for the year. We are encouraged by the government's plans to invest in infrastructure," company's Managing Director and CEO Neeraj Akhoury said. Ongoing efforts to enhance operational efficiency delivered a reduction in energy consumption as a result of optimization of fuel mix and other input materials, he said. During the quarter, sales volumes of cement and concrete stood at 5.45 million tonne and 0.67 million cubic meter, while for the year it was 22.99 million tonne and 2.59 million cubic meter, respectively.

"The company's ready mixed concrete business showed positive momentum throughout the year, achieving overall growth of about 14 per cent in sales volume during last quarter as a result of its strong focus on infrastructure, commercial and realty segments and promotion of the company's range of value-added special products," Akhoury said. ACC's 1.35 million tonnes cement grinding unit at Sindri in Jharkhand, was commissioned at the end October, completing the new integrated project with its clinkering line of 2.79 million tonnes and grinding unit of 1.10 million tonnes in Jamul.

The new units will strengthen the company's market presence especially in the eastern region, it said. "The slowdown witnessed after demonetization is easing and we expect the economy to show solid growth in the months to come. lncreased government spending on infrastructure development, housing, roads, railways, irrigation and other schemes as announced in the recent Union Budget are expected to further reinvigorate the construction sector soon and boost dernand for cement and concrete during 2017," Akhoury added.