Despite moderate growth in cement dispatches and substantial savings on fuel costs, cement companies saw their profits sink in the July-September period due to a sharp drop in cement prices and higher freight expenses. ACC Ltd, Ambuja Cements and UltraTech Cement reported 45-50 per cent year-on-year declines in their net profits during the quarter.
The all-India average despatches growth, according to an industry estimate, was 3.5 per cent in the September quarter.
On the cost front, companies made savings on coal costs with thermal coal prices in the international market touching a multi-year low of $78 a tonne (down 11 per over last year).