The Hindu Business Line : ACC first quarter net up 84 pc on higher realisation

IMPROVED price realisation from cement sales has helped Associated Cement Companies Ltd (ACC) report an 84 per cent increase in net profit, year-on-year, for the first quarter of the current fiscal, despite near-stagnant sales volumes.

Net profit amounted to Rs. 81.23 crore from Rs 44.14 crore.

Net sales rose 17 per cent to Rs. 947.93 crore (Rs. 809.79 crore), despite volumes remaining almost unmoved, at 38.85 lakh tonnes (38.52 lakh tonnes).

Total expenditure rose 14.2 per cent to Rs 785.82 crore (Rs 687.55 crore). The increase in input costs, especially fuel and freight, was neutralised largely by way of improved operating efficiencies, said a news release from the company.

Profit before interest depreciation and tax, at Rs 176.65 crore, showed a 25 per cent increase.

Net interest costs fell over 16 per cent to Rs 20.88 crore (Rs 24.96 crore); with depreciation was almost unchanged at Rs 43.91 crore (Rs 43.56 crore).

Profit before tax and exceptional items amounted to Rs 111.86 crore (Rs 72.64 crore). Provision for current and deferred tax amounted to Rs 8.52 crore (Rs 45.72 crore) and Rs 22.11 crore (Rs 11.28 crore), respectively.

The cement industry has posted a lower growth of around 2.3 per cent in the first quarter of the current fiscal compared to 4.5 per cent during the corresponding year-ago quarter, noted the news release. The continued emphasis in the Financial Bill 2004 on infrastructure such as roads, airports and housing augurs well for the cement industry, and it is expected to better in the remaining period of the financial year, said the release.