Business Daily from THE HINDU group of publications
Wednesday, May 21, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Wednesday, May 21, 2008 ePaper | Mobile/PDA Version | Audio |
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Corporate
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Announcements
Our Bureau New Delhi, May 20 ACC Ltd said that it was likely to increase prices after three months considering the impact of high input costs on its margins. “Showing our concern to the rising inflation, we froze prices for two-three months, but after that we are going to increase (the rates) if market forces and the Government allow us,” ACC Ltd Managing Director, Mr Sumit Banerjee, told presspersons here. After the Government and cement manufacturers agreed to hold cement prices last week, he said the industry was unable to increase them, unlike in other cases where prices are always determined by market forces. He further said that if the Government considered rolling back the recently announced hike in excise duty, the company may not consider an increase in cement prices after three months. The company’s input costs have increased by about 18-20 per cent in April this year from the year ago period. “Our company is facing an erosion of 1 per cent EBIDTA margin every month due to rising input cost and the present duty structure,” Mr Banerjee said. In the first quarter of 2008, the company grew at 10 per cent despite which the margins slipped. “Margins in Q2 will be under further pressure because of high input costs, mainly coal prices. Excise duty hike will also hit further,” he said. More Stories on : Announcements | Associated Cement Companies Ltd | Cement
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