Mumbai : Increased government spending on infrastructure development including roads and railways, housing and other schemes as announced in the Union Budget are expected to reinvigorate the construction sector and boost demand for cement and concrete during 2018, predicted cement major ACC ltd.
In its Jan-March quarterly report the company meanwhile has said that rise in energy and slag prices adversely impacted operating costs during the current quarter as compared to the same quarter a year ago. Despite a challenging external environment. cost savings were achieved through sustained improvement in operational efficiencies, optimization and robust control on fixed costs.
Net Sales during the quarter went up by 14% to Rs 3,557 Crore compared to R 3,108 Crore for the same quarter last year. Operating EBITDA for the quarter registered a growth of 18% to Rs.492 Crore as against Rs.417 Crore during the same quarter of the previous year. Cement & Ready Mix Concrete sales volume grew 8% and 16% respectively during the quarter on YoY basis reflecting a stronger focus on premium products and consumer solutions.
“ACC’s financial performance in QI ended March 31, 2018 reflects strong volume growth momentum powered by our focused approach to innovation, operational improvements, and customized solutions for consumers. We are on a clear growth trajectory to deliver strong returns to our shareholders.” said Neeraj Akhoury, Managing Director and CEO.