ACC Cement Sales Volumes Declines 6.5% In July 2012
DSIJ Intelligence / 03 Aug 2012
ACC Cement, one of the largest cement producing companies in India, has announced its production and dispatch numbers for the month of July 2012.
ACC Cement, one of the largest cement producing companies in India, has announced its production and dispatch numbers for the month of July 2012. And for the first time in last six months the company has reported a decline. The cement production for the month has declined by 2 per cent while the dispatches are down by 6.5 per cent to 1.88 million tonnes. This decline is attributed to the revival of monsoon season which is also cyclically weak quarter for the cement companies.
| ACC Dispatch Figures For Jan to July 2012 | ||||
|---|---|---|---|---|
| Months | 2011 | 2012 | YoY | MoM |
| Jan | 2.05 | 2.23 | 8.8 | |
| Feb | 2 | 2.15 | 7.5 | -3.6 |
| March | 2.18 | 2.34 | 7.3 | 8.8 |
| April | 2.05 | 2.07 | 1 | -11.5 |
| May | 1.99 | 2.05 | 3 | -1 |
| June | 1.91 | 1.96 | 2.6 | -4.4 |
| July | 2.01 | 1.88 | -6.47 | -4.1 |
ACC in last six months have reported decent uptick in sales volume. This was due to Escalation in demand and a cyclical bounce-back between January to May which helped the company to report strong numbers for the June quarter 2012. The net sales of the company grew by 15% to Rs 2918 core while net profit grew by 27% to 412 crore. It should be noted that Jan to May is the strongest period for cement companies as construction and infrastructure activity are at their peak levels. Besides this the cement companies also benefited from the delayed monsoon which resulted into strong sales volumes for the month of June 2012. ACC too benefited from this and its sales volume in the month of June grew by 2.6 per cent on YoY basis to 1.96 million tonnes.
However with the revival of monsoon we will continue to see downtrend in the sales volume in the next couple of months. This coupled with fall in cement prices and high input cost cement companies will hurt the margins of the cement companies. And it will be difficult for them to keep their heads in the falling market for the September quarter 2012 .
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