In line with the growth momentum of core sectors, cement majors ACC Ltd and Ambuja Cements (both Holcim Group companies) on Thursday reported growth in volumes and revenue for the quarter ended June 2009. ACC Ltd, India?s largest cement producer, reported growth of 85% in its net profit to Rs 471 crore during the quarter against Rs 255 crore in the corresponding quarter last year.
Similarly, Ambuja Cements Ltd also reported a growth of 18.1% in its net sales to Rs 1,847 crore during the quarter against Rs 1,564 crore last year. The company?s net profit, however, dipped 43.7% to Rs 325 crore against Rs 577 crore in the same period last year.
The growth rate of India’s core sector industries, including crude oil, cement, finished steel, coal and electricity, shot up to 6.5 % in June 2009, from 2.8 % in May 2009. The index production of core sector industries stood at 5.1 % in June 2008. During the quarter April-June 2009, cement production grew 12.1 % (provisional) against 5.8 % during the same period of 2008.
?Higher utilisation of captive power, focused cost control and sustained demand due to the government?s fiscal stimulus packages together helped improve ACC?s profitability in the quarter under review,? ACC said in a statement. Net sales of ACC during the quarter stood at Rs 2,188 crore, up 15% as compared to Rs 1,906 crore last year.
?Our results are positive. It is also encouraging that we have been able to take some positive steps with regard to securing our long-term energy needs,? said Sumit Banerjee, MD, ACC Ltd. ACC Ltd?s shares on Thursday were up 5.80% to close at Rs 854.65 on the Bombay Stock Exchange (BSE).
?Cement demand growth remained buoyant during the quarter, registering around 12% YoY growth at the national level. The main drivers have been solid demand in the rural and semi-urban markets, and the boost to infrastructure projects from the various government stimulus packages, as well as the late arrival of the monsoon,? the company said. Ambuja Cements shares on BSE closed at Rs 96.95, marginally up by 0.83% from the previous days close.