The Hindu Business Line : ACC net rises 15% on higher sales

Mumbai, Jan. 31 Buoyed by higher sales, cement major ACC Ltd has posted a 15.14 per cent rise in net profit to Rs 1,438 crore for the year ended December 31, 2007, against Rs 1,232 crore logged for same period a year ago.

The company, which follows a calendar year, has not furnished results for the fourth quarter. “SEBI norms allow us to disclose annualised figures,” the company said.

Total income for year ended 2007 increased 20 per cent to Rs 7,136 crore (Rs 5,945 crore). Net sales were up 22 per cent at Rs 1,679 crore against Rs 1,378 crore. Total income rose to Rs 1,707 crore from Rs 1,400 crore.

To pay Rs 10 final

“The improvement in profitability was due to higher sales volume and improvement in operational efficiencies,” the company said. ACC announced a final dividend of Rs 10 per share for the year ended December 2007.

Sale of cement reached an all-time high of 19.97 million tonnes in 2007, representing an increase of 6.1 per cent over the previous year, ACC said. On a consolidated basis, the group posted a net profit of Rs 1,427 crore for the year (1,240 crore). Total income increased 20 per cent to Rs 7,189 crore (Rs 5,984 crore).

On Thursday, the company’s stock on the BSE were down 1.84 per cent at Rs 783.

New project

The board approved establishment of a new 7,000 tonne per day clinker line (three million tonnes per annum) along with 25 MW captive power plant at Chanda in Maharashtra. The project outlay is estimated at Rs 1,450 crore and scheduled for completion in 2010.

“The Chanda expansion project will give a significant boost to our market presence in Vidarbha, Maharashtra and an opportunity to widen our customer base in the home market of Central India,” the company said.

Cement sector outlook is promising. Several manufacturers are implementing significant capacity expansion plans. These additions will help the industry meet the increased demand for cement in future. We expect the demand for cement to grow especially in infrastructure and housing sectors, keeping pace with the growth of the nation, said Mr Sumit Banerjee, Managing Director, ACC.

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