ACC June quarter results hit by lower realisation and despatches
23 Jul 2010
ACC, India's leading cement maker reported disappointing numbers for the June quarter.
The company's profit suffered (down by 26 per cent) on a sharp decline in realisation in markets in southern and western pockets and amid a 1.8 per cent fall in despatches.
Off-take was slower in the markets in the north with the winding down of construction activity for the Commonwealth Games related infrastructure.
Cement consumption is projected to scale down by over 20 per cent year on year in North India in the April-May period.
In price terms, in South India correction was sharp where new supplies have caused a glut in the market. Prices in the southern region were down to Rs20-25 a bag as against levels of April-June last year. All India average price for the quarter is estimated at around Rs240 a bag as against Rs 245-250 a bag last year.
What also needs to be pointed out is the fact that the June quarter of 2009 was a period that saw peak sales for all cement players including ACC.
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