The Hindu Business Line : ACC net up 159 pc on refractory biz sale

ACC reported a lower net profit (before exceptional items) year-on-year, for the second quarter of the current fiscal, citing higher production costs that higher volumes and realisations could not annul.

Sale of cement during the quarter was affected due to floods and heavy rains in many parts of the country, said a news release from the company. Consolidated volumes were up only 4 per cent for the quarter, year-on-year, amounting to 3.94 million tonnes (3.80 million tonnes).

Profit before exceptional items and tax dipped by almost 20 per cent, at at Rs 95.65 crore, down from Rs 119.45 crore recorded for the corresponding quarter of the previous fiscal.

With the one-time income of Rs 172.80 crore from the sale of the company's refractory business, the net profit rose to Rs 203.43 crore (Rs 78.56 crore), a rise of 158.9 per cent year-on-year.

Total income rose by 12.15 per cent, to stand at Rs 1,030.22 crore (Rs 918.54 crore); while total expenditure increased by 17.6 per cent, and amounted to Rs 864.9 crore (Rs 734.96 crore).

Profit before interest, depreciation, exceptional items and tax, at Rs 165.32 crore, showed a 9.9 per cent drop, from the year ago amount of Rs 183.56 crore.

Interest costs, at Rs 19.97 crore, were almost unchanged, while depreciation stood at Rs 48.7 crore (Rs 44.42 crore).

With respect to production costs, there was an increase in cost of inputs such as coal and petroleum products; a change in railway freight classification, as well as increase in royalty on limestone. Higher volumes and improved realizations only partially offset this, said the news release from the company.

For the six months ended September 30, 2004, the consolidated net profit for ACC (including income from sale of refractory business) amounted to Rs 350.65 crore, up from Rs 166.98 crore during the corresponding year-ago period.

Sale of cement for the six months rose by 7 per cent, to 8.38 million tonnes (7.82 million tonnes), with sales turnover up 12 per cent, amounting to Rs 2,272.07 crore (Rs 2,022.63 crore)

The company suggested that the quarter currently ended is only a temporary setback: "The cement industry recorded a growth rate of 10 per cent for the six months as compared with 6.3 per cent in the corresponding previous period. With the continued emphasis on infrastructure and housing sector and with good monsoon in most parts of the country, industry is expected to do well in future. With the improving overall growth of the economy (GDP) expected to grow over 7 per cent per annum and with improving demand-supply dynamics, cement industry may experience stable to improved cement prices."

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
ACC net up 159 pc on refractory biz sale

Crompton Greaves net up 30.44 pc

Ruchi Soya Q2 profit up 25.49 pc

Tata Infotech Q2 net rises 52 pc

UTI Bank net rises to Rs 109 cr in second quarter