ACC share price spikes a whopping 14% on better than expected Q1 results

ACC share price rallied a whopping 14 per cent on Tuesday even as the cement major reported marginal increase in consolidated net profit to Rs 329 crore for the June quarter. It had posted Rs 326 crore profit in April-June period of last fiscal, ACC Ltd said in a BSE filing.

Reacting to its robust June quarter earnings, ACC share price advanced as much as 13.6 per cent to Rs 1482.90 on the BSE. its biggest intraday pct gain since May 2009 

The company, which follows January-December as its financial year, said net sales were at Rs 3,768 crore -- up from Rs 3,329 crore in the year-ago period.

In the second quarter, cement sales volume was at 7.24 million tonnes as against 6.74 million tonnes, up 7 per cent.

Ready mix concrete sales volume was at 0.77 million tonnes as compared to 0.63 million tonnes in the year-ago period, a growth of 22 per cent, the company said.

ACC Ltd Managing Director & CEO Neeraj Akhoury said that while the company has achieved growth in sales, there were continued cost headwinds driven by the rise in input material and logistics costs.

"The positive impacts of our step change in cost management are favourably impacting our financial results. We remain optimistic in our capacity to develop new revenue lines as well as strengthen our performance in both the cement and ready mix business," Akhoury added.

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On the outlook, ACC Ltd said it expected cement demand to be positive, driven by the 'Housing for All' programme, sustained infrastructure spends and rural housing.

On the other hand, ACC said it "anticipates that cost pressures will remain, largely due to a rise in fuel costs as well other input material costs".