There was not much hope for the cement companies anyways as construction activity had come to a halt and investments were being postponed. Therefore, it was a disappointing quarter for ACC which reported 40.5% lower profits at Rs.270 crore and 37.3% lower sales at Rs.2602 crore for the Jun-20 quarter.

Even as the core cement business took a hit, the smaller RMC division took a much bigger hit at ACC. Total cement sales for ACC were down by 33.59% while the sales of ready mix concrete or RMC was down by 82.87% as construction activity came to a virtual standstill in the face of tepid demand and absence of labour in urban pockets.

Due to the lockdown, the pressure on the profits was visible for ACC despite a 36% fall in expenses during the quarter. ACC is also up against two larger dominant cement players in India in the form of Ultratech Cements and Bangur’s Shree Cements. These companies have managed scale and efficiencies much more efficiently compared to ACC.