India: ACC’s net sales have fallen by 4% year-on-year to US$1.63bn in 2016 from US$1.70bn in 2015. Sales volumes of cement fell by 2.7% to 23.0Mt from 23.6Mt and operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 7.5% to US$211m from US$229m. However, profit after tax rose by 2.7% to US$90m from US$87.5m. The company described the market conditions in 2016 as ‘challenging.’ It added that the economic slowdown following demonetisation was easing.
“The highlight of the year was strong cost saving measures, especially on fuel flexibility and raw materials. Focusing on our high quality, high performance product portfolio played an important role in the overall performance for the year. We are encouraged by the government's plans to invest in infrastructure," said Neeraj Akhoury, Managing Director and chief executive officer of ACC.
The cement producer’s 1.35Mt/yr grinding plant at Sindri, Jharkhand was commissioned at the end October 2016, joining a 2.79Mt/yr integrated plant at Jamul, Chhattisgarh which was commissioned earlier in 2016. The new plants are expected to strengthen ACC’s market presence in the east of the country.
