India’s ACC beats Q2 profit view on strong domestic demand

BENGALURU (Reuters) – India’s ACC on Thursday reported a bigger-than-expected second-quarter profit aided by sturdy domestic demand, and forecast strong growth for the cement industry.

The cement maker’s profit after tax stood at 3.84 billion rupees ($46.16 million), compared to a loss of 910.9 million rupees a year ago.

Analysts polled by LSEG expected a profit of 3.43 billion rupees.

Revenue from operations rose 11.2%, while expenses contracted marginally as lower power and fuel costs largely offset higher raw material expenses and costs of buying finished goods for its business.

“Cement industry is set to witness volumetric growth as demand environment remains robust on the back of increased housing and infrastructure spend,” the company said in a statement.

The company’s CEO Ajay Kapur in July said parent Adani Group will continue to use ACC and Ambuja cement brands to sell cement products and has no plans to merge the two entities.

Adani Group had entered India’s cement sector last year with a $10.5 billion deal to buy Ambuja and ACC from Swiss giant Holcim.

Rival UltraTech Cement last week reported a higher-than-expected revenue, aided by higher government spending and market share gains.

($1 = 83.1940 Indian rupees)

(Reporting by Manvi Pant in Bengaluru; Editing by Varun H K)