The Hindu Business Line : ACC net profit falls 15% in Q2, sales up 27%

Mumbai, July 19 Cement major ACC Ltd reported a 15 per cent fall in net profit to Rs 351.24 crore in the second quarter ended June 30, against Rs 413.24 crore in the same quarter last year.

However, last year’s second quarter profit was boosted by an exceptional income (comprising sale of land and disinvestment of Everest Industries) of Rs 146.61 crore. Besides, the company had also made a higher provision of Rs 160.39 crore (Rs 141.59 crore) for tax in the second quarter this year.

The company has recommended an interim dividend of Rs 10 per share, aggregating to a total payout of Rs 219.24 crore (including tax on dividend). The record date for payment of interim dividend has been fixed as August 3, while it will be paid on August 14.

Turnover

Sales turnover was up 27.2 per cent at Rs 1,867.95 crore in the quarter against Rs 1,468.80 crore last year. Sales volume showed a 15.3 per cent rise to 5.34 million tonnes (mt) as against 4.63 mt last year.

“Profits in the second quarter have risen on account of improvements through higher volume and improved product mix management by sales of blended cement, improvements in realisation, offset by substantial increase in cost of inputs,” the company said in a media release.

Overall, the cement industry recorded a growth rate of about 7.1 per cent during the current half year ended June 7 as compared to the corresponding previous period.

‘Growing needs’

“The GDP growth of the country continues to be strong. As the country needs more investment in housing and infrastructure sector, cement industry needs to gear up to service the growing needs. We expect that the industry will receive adequate support from all stakeholders and statutory authorities in meeting this challenge,” the release said.

The company’s capacity expansion plan at Lakheri (in Rajasthan) by 0.90 tonnes to 1.50 tonnes along with a new 25 mw captive power plant and augmentation of grinding capacity at Kymore in Madhya Pradesh have gone into commercial production during the current quarter.

Projects for increasing grinding capacities at Sindri (in Jharkhand) and Wadi (in Karnataka) are in progress. Expansion of capacity at Bargarh (in Orissa) by 1.18 tonnes along with a 30-MW captive power plant is on as per scheduled. The expansion of the new Wadi plant by a further 3 tonne has been taken up, the company said.

The company in July 2007 sold its entire shareholding in its wholly-owned subsidiary ACC Nihon Casting Ltd for Rs. 30 crore. This transaction has no significant impact on the results of the company.

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