The Hindu Business Line : ACC Q2 net zooms to Rs 412 cr

Rock solid
Total expenditure up only five per cent
Cement industry grew 12.2 per cent in H1
`Demand for cement expected to remain strong'

Mumbai , July 19

ACC has nearly tripled net profit for the second quarter of the current fiscal, benefiting both from higher cement prices and one-time gains on sale of assets during the period.

Consolidated net profit rose to Rs 411.79 crore for the quarter ended June 2006, up from 148.95 crore during the corresponding previous period.

Volume sales at 4.63 million tonnes were up 4.3 per cent. But higher realisations led to turnover rising 21.5 per cent to Rs 1,477 crore (Rs 1,216 crore).

The company also recorded one-time realisations of Rs 140 crore from sale of land and of Rs 38 crore from sale of Mancherial Cement Works.

Total expenditure was contained, rising only five per cent year-on-year to Rs 1,012 crore (Rs 965 crore). Provision for tax stood at Rs 187 crore (Rs 179 crore). EBITDA rose 73.9 per cent to Rs 482 crore (Rs 277 crore).

Interest costs declined to Rs 15.2 crore (Rs 27.7 crore); depreciation stood at Rs 59.85 crore (Rs 22.97 crore).

On a standalone basis, the company posted net profit of Rs 406 crore against Rs 142 crore earlier.

Total income, net of excise, stood at Rs 1,478 crore (Rs 1,165 crore).

The results for the quarter under review are not strictly comparable year-on-year because Tarmac (India) was acquired in December 2005 and consolidated only later, said a company statement.

During the January-June 2006 period, the cement industry grew 12.2 per cent compared to 10.5 per cent for the corresponding previous period, it added.

"With the continued emphasis by the Government on infrastructure sectors and the housing sector, the demand for cement is expected to remain strong."

The company's scrip lost Rs 36.70 on Wednesday, closing 4.49 per cent lower at Rs 779.95 compared to Tuesday's close.