The Hindu Business Line : ACC Q4 net triples on higher sales

ONE-TIME PROFITS from divestment in its subsidiary as well as improved sale of cement led to a multi-fold rise in Associated Cement Companies of India Ltd's (ACC) net profit for the last quarter of its fiscal ended December 31, 2005.

(The board on Tuesday decided to change the financial year from April-March to January-December.)

Net profit was recorded at Rs 192.48 crore, well over three times higher than Rs 53.08 crore in the corresponding quarter of the previous fiscal.

Profit from sale of stake in its subsidiary Everest Industries accounted for over Rs 110 crore as one-time gains.

Net sales at Rs 1,072 crore (Rs 955 crore) rose by 12.25 per cent, while total expenditure at Rs 914.7 crore (Rs 834.5 crore) increased by 9.6 per cent.

Profit before interest, depreciation, extraordinary items and taxation amounted to Rs 191.9 crore (Rs 152.6 crore), recording a rise of 25.7 per cent.

Net interest costs amounted to Rs 21.3 crore (Rs 27.28 crore), while depreciation accounted for Rs 60.67 crore (Rs 51.22 crore).

Profit before tax stood at Rs 208.29 crore (Rs 73.65 crore).

For the fiscal (consisting of nine months) ended December 31, 2005, profit after tax and extraordinary items amounted to Rs 544.18 crore (up by 156 per cent over the same nine months of the previous fiscal of Rs 212.87 crore).

The results also include one-time gains from divestment in Everest Industries (Rs 110 crore) and sale of its refractory unit (Rs 174.05 crore).

Volumes were up 6.8 per cent at 12.97 million tonnes, and sales value up by 15 per cent, net sales amounting to Rs 3,203 crore (Rs 2,788 crore).

This includes sales from Bargarh and Damodar Cement, which were merged with the company.

The board has recommended a dividend of Rs 8 per share.

ACC gained Rs 5.40 on the Bombay Stock Exchange to close at Rs 549.5 a share.