The performance was largely disappointing mainly on account of operational factors. Consolidated net profit for the second quarter ended 30th June 2014, came in at Rs.243 crore, down over 7% (YoY) and this was despite a 8% jump in net sales at Rs.3009 crore. The fall in net profit was thus led by 10% rise in operating cost, mainly due to power and fuel, up 5% and freight and forwarding charges were up 17%. This was on account of hike in freight charges by railways as over 60% of ACC’s production is transported by railways; the price of diesel also going up also added fuel to fire.

During the quarter, sales volumes increased to 6.35 million tonnes in June quarter from 6.12 million tones in previous Q2. The company has 16 cement plants across India and  is currently working on a Rs.3000 crore expansion plan. the existing Jamul plant will be decommissioned and upgraded to a 4 mtpa plant based on state-of-the-art technology, while a 1.5 mtpa grinding unit will be added at Sindri in Jharkhand. The two plants would be commissioned by Q2CY15. Looking ahead, with the Govt taking initiatives to boost infra growth in the country, demand is expected to go up. Prices could remain weak till Q2 and after that, one can expected a rise.