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ACC posts Rs 44-cr profit in Q1

Our Bureau

MUMBAI, July 12

BETTER price realisation has pushed up first quarter profits of Associated Cement Companies.

ACC has reported a net profit of Rs 43.95 crore for the first quarter ended June 30, 2001 as against a net loss of Rs 9.50 crore in the corresponding period last year.

According to the company, operating margin in the first quarter has increased to 17.9 per cent from 8.8 per cent. The first quarter results are significant as the profit for the period is after providing Rs 27.70 crore for deferred tax. The notes to the accounts said it is made on a provisional basis and adjustments, if any, on detailed review, will be done in the subsequent quarters. (The net profit for the year ended March 31, 2001 was Rs 57.17 crore.)

The total sales for the first quarter stood at 30.29 lakh tonnes, almost static at the level of the corresponding quarter of the previous year when it was 30.43 lakh tonnes. Of the total, traded cement sales stood at 1.60 lakh tonnes (2.35 lakh tonnes). The sale of own cement was higher by 2 per cent, the company said.

Total income from operations increased to Rs 851.72 crore from Rs 755.46 crore including other income of Rs 8.02 crore (Rs 8.10 crore) and dividend and interest of Rs 1.19 crore (Rs 1.20 crore).

Operating profit before interest and depreciation was 128 per cent higher, at Rs 152.09 crore as compared to Rs 66.64 crore in the previous period.

The company said improvement in efficiencies and cost reduction measures helped improve sales and realisations. It also helped offset impact of inflation.

Total expenditure during the quarter increased marginally to Rs 699.63 crore (Rs 688.82 crore).

Interest outgo was Rs 37.22 crore (Rs 41.38 crore) and depreciation stood at Rs 35.28 crore (Rs 34.76 crore).

ACC has accounted for an exceptional item -- written down value of assets and provision for contingencies -- of Rs 2 crore.