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Holcim Group companies — ACC and Ambuja Cements — have reported a mixed performance in the financial year ended December with ACC recording a 31 per cent drop in net profit and Ambuja Cements a four per cent increase.
The two companies follow a January to December financial year.
The high raw material and fuel cost impacted both the companies' performance. ACC's production volumes were down marginally at 21.29 million tonnes per annum (mtpa) against 21.52 mtpa logged last year.
Coal prices
The company's raw material cost increased by 24 per cent to Rs 1,451 crore (Rs 1,168 crore) due to sharp increase in coal prices.
Power and fuel bill was up four per cent at Rs 1,610 (Rs 1,551 crore) while freight cost rose three per cent at Rs 1,126 crore (Rs 1,093 crore).
Operating income
The operating income includes Rs 64 crore arising from write back of provision made in earlier year in relation to claims of Gagal Sales Tax subsidy which has been disputed by the authorities and was sub-judice. The company has won the case in Supreme Court.
The company has expanded capacity of kiln number two in Wadi to 12,500 tonnes a day, the largest in the world.
A 25 MW captive power plant was commissioned at Wadi in October, while the second unit of similar capacity is scheduled to be completed in the March quarter.
Clinkering line
A new clinkering line of 7,000 tonnes a day was commissioned at Chanda in Maharashtra in November.
The new line will result in additional capacity of three mtpa.
A captive power plant of 25 MW was also commissioned.
The new addition will suffice the entire power requirement of the Chanda unit.
With new cement capacity additions, the company's installed capacity will go up to 30 mtpa.
Dividend
The board has recommended a dividend of Rs 20.50 a share which includes a special one-time platinum jubilee dividend of Rs 7.50 a share.
The dividend will be paid to the beneficial owners as on March 30, as per the list provided by depositories, the company said in a press release.
AMBUJA output jumps
Ambuja Cements posted a four per cent increase in net profit at Rs 1,263 crore during the year on the back of higher production and an exceptional income of Rs 27 crore.
Lacklustre demand
Output jumped six per cent at 20 million tonnes against 18.8 million tonnes last year. EBITDA decreased marginally to Rs 1,951 crore (Rs 1,972 crore) due to higher raw material cost and lacklustre demand in major part of the quarter.
Unseasonal weather
Mr Onne van-der Weijde, Managing Director, Ambuja Cements, said the early onset of monsoon had a negative impact as floods in some regions caused major disruption to construction activity besides post-festival pick-up in demand was slow to materialise due to unseasonal weather conditions continued to affect construction work.
Power and fuel cost of the company rose 19 per cent to Rs 1,697 crore (Rs 1,423 crore) on the back of spike in coal prices while freight and forwarding bill was up 20 per cent at Rs 1,610 crore (Rs 1,347 crore) .
Dividend
The company has announced that the Register of Members and share transfer books will remain closed from February 15 to 22 (both days inclusive) for the purpose of payment of final dividend of Rs 1.40 a share for the financial year ended December 31.
The dividend shall be paid on April 15 subject to the approval of shareholders at the forthcoming annual general meeting.
Shares of ACC on the BSE were down 0.31 per cent at Rs 986 while Ambuja Cements' were up three per cent at Rs 125 on Thursday.
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