Cement major ACC is expecting a faster growth in the second half of the year on rise in in government spending on infrastructure projects and possibility of good monsoon this season. ACC, which has reported a jump of 3.77 per cent in its cement sales to 6.60 million tonnes in the January-March quarter, is expecting the overall consumption of cement to increase.
“The outlook for 2017 looks brighter as the economy advances with expectations for accelerated growth in overall consumption across several sectors including construction and building material,” ACC said in its latest updates filed with the BSE.
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ACC, which follows January-December as fiscal, said: “With the government moving ahead on its agenda of transformative economic growth, the cement industry and the company are expected to perform well.”
The Mumbai-headquartered company would focus on “leveraging its legacies and innate strengths to achieve the highest possible levels of operating performance and cost competitiveness”.
It said the central government is also providing thrust on the rural sector, infrastructural development, housing as announced in the Union Budget for 2017-18 and this is expected to boost to the overall investment climate.
“If 2017, also experiences a normal monsoon, GDP growth is likely to rebound in the second half of the year,” the company said.
According to ACC, “Better liquidity and improved tax collections will enhance government’s ability to spend on infrastructure and other development projects, leading to faster growth.”
Last week, ACC had reported a 9.28 per cent increase in its total income to Rs 3,663.18 crore for January-March period although its net profit had declined 8.90 per cent to Rs 211.06 crore.
The cement sector which grew at over 6 per cent in the first three quarters of FY 2016-17 had tapered off in the last quarter impacted by demonetisation.