Expanded capacity, lower base helps Ambuja, ACC report 28% and 14% jump in July sales

MUMBAI: Lower base and expanded capacities helped Holcim Group controlled Indian cement majors ACC and Ambuja Cements report higher growth in sales for July.

ACC reported over 28% year-on-year growth in cement dispatches at 2 million tonne. The 30.6-million tonne company reported nearly 31% rise in output for the month at 2.03 million tonne.

Ambuja Cements registered 14% year-on-year jump in July sales of cement and clinker at 1.7 million tonne. The 25-million-tonne company reported 18.4% growth in monthly output at 1.67 million tonne.

In the backdrop of usual sluggish demand during monsoon, most analysts attributed the sharp rise in 30.6-million-tonne cement maker ACC’s production and sales numbers to a lower base and the effect of expanded capacity. On Monday, shares of ACC closed at Rs 1,010 on the National Stock Exchange, down 0.2% from Friday’s close. Shares of Ambuja Cements closed at Rs 129.25, down 0.1% from Friday’s close.