India: Rising costs have reduced ACC's profit substantially in the April – June 2015 quarter, despite its revenues meeting expectations.
In spite of selling more cement, ACC's net realisation fell by 3% compared to the January - March 2015 quarter and was also slightly lower year-on-year. The fall was attributed to low cement prices in the June 2015 quarter, which is normally robust considering the fast-paced pre-monsoon activity, as well as a significant rise in operating cost per tonne. ACC's June quarter performance reflects the trend of cost pressures and weak realisations across the sector.
