India’s leading cement maker, ACC has reported Q2, 2014 net profit of US$40.1m, some 7% lower than the US$43.1m reported in the Q2, 2013. The fall in profit was attributed to higher total expenses. Total expenses increased by 10% during the quarter compared to year-ago period due to higher raw material and employee costs and increased power, fuel and freight charges. Other expenses grew by 8% year-on-year. Manufacturing and distribution costs continued to rise, though the company derived some benefits from the ongoing cost leadership program and an increase in the sales of premium products.

Revenue grew by 7.5% year-on-year to US$509m during Q2, 2014, aided by higher volumes. Sales volumes increased to 6.35 MT, up from 6.12 MT in Q2, 2013. Demand for cement showed some improvement and the company’s sales volumes during the quarter improved by 4%. Profit before interest and tax from the cement business declined to US$50.7m from US$57.7m year-on-year. Operating profit (EBITDA) dropped by 8% year-on-year to US$74.9m.

ACC expects the positive trend in demand for cement to continue as a result of government’s emphasis on housing and infrastructure development. ACC also announced that Harish Badami will be the new CEO and Managing Director from 13 August 2014, replacing Kuldip Kaura.