ACC gains 7% after net profit doubles in Q2

New Delhi: Shares of jumped as much as 7 per cent during the early trade on Tuesday, after the company reported an over two-fold jump in consolidated net profit for the second quarter ended June 2021.

The cement maker posted a net profit of Rs 569.45 crore, compared to a profit of Rs 270.95 crore in the April-June quarter a year ago, ACC said in a BSE filing. The company follows the January-December financial year.

Shares of ACC jumped 7 per cent to Rs 2299.05 on Tuesday. However, the counter was trading at Rs 2274.95 at 10.15 am. BSE Sensex was trading 225.09 points or 0.31 per cent lower at 52,328.31 at the same time. It settled at Rs 2150.65 on Monday.

The company, reported revenue from operations of Rs 3,884.94 crore during the quarter, up 49.29 per cent from Rs 2,602.24 crore in the year-ago period.

ACC, a subsidiary of Swiss building material major Holcim group (earlier LafargeHolcim), witnessed improvement in performance helped by a lower base, increase in sales and cost efficiency.

Shares of ACC have been an outperformer, delivering over 40 per cent in the year 2021 so far. The counter has gained over 70 per cent in the last one month.

Total expenses climbed 40.97 per cent to Rs 3,175.47 crore, compared to Rs 2,252.62 crore earlier. Revenue from cement rose 43.96 per cent to Rs 3,672.31 crore, as against Rs 2,550.99 crore in the corresponding quarter of the previous year.

Cement sales volume jumped 43.7 per cent to 6.84 million tonnes (MT) as against 4.76 MT in April-June 2020. Revenue from ready-mix concrete increased four-fold to Rs 255.08 crore, as against Rs 62.23 crore.