Mumbai (Maharashtra) [India], July 21 (ANI): Shares of cement manufacturer ACC Ltd rose by 4.53 per cent on Tuesday around noon as investors continued to maintain bullish sentiments despite the company taking downhill in its bottom-line and top-line base.
ACC -- which follows a calendar year for its financial performance -- said a day earlier that its net profit dropped to Rs 271 crore in Q2 (April to June) compared to Rs 456 crore in the corresponding period of the previous year. For the first six months of 2020, ACC's profit stood at Rs 594 crore versus Rs 802 crore of the same period last year.
Net sales in the quarter declined by 38 per cent year-on-year to Rs 2,520 crore compared to Rs 4,059 crore for the same quarter last year. Operating EBITDA for the quarter registered a decline of 33 per cent to Rs 525 crore.
"The company witnessed significant volume impact during the second quarter of 2020 as a result of COVID-19 situation and lockdowns," said Managing Director and CEO Sridhar Balakrishnan.
"ACC believes that our country with its strong record of growth and sound economic policies will rebound on its growth trajectory. The recent initiatives by the government will help the resurgence of rural demand including affordable housing," he said.
Keshav Lahoti, Associate Equity Analyst at Angel Broking, said demand revival will be key for the company going forward.
At 12:10 pm, ACC stock was trading 4.53 per cent higher at Rs 1,390.25 per unit. (ANI)