Mumbai: Homegrown cementmaker ACC posted an increase in net profit for the third quarter ending September; however it missed street estimates.
The company reported a 15% year-on-year increase in consolidated net profit at Rs 209 crore. An ET estimate by analysts had pegged the net profit at Rs 251.53 crore. Net sales grew by 10% at Rs 3364 crore on the back of an equal percentage growth in cement volume. Ready mix concrete volume grew at 12% driven by increase in the sale of value added products and addition of eight new plants across the country.
ACC follows a January to December financial calendar.
Operating EBITDA increased by 7% to Rs 444 crore. Even though the quarter was marked by soaring input prices like that of coal, petcoke, diesel and slag, the rise was partly offset by improvement in operating efficiencies and productivity, the company said in a release.
In its outlook, the company said that it will focus on operating efficiencies to improve performance and demand is expected to come from growth in rural and affordable housing segments.
"Despite continuous input cost headwinds, ACC has delivered consistent financial performance. We are also encouraged by the government's push on infrastructure and affordable housing which is driving growth in cement demand," Neeraj Akhoury, MD at ACC said