Cement maker, ACC, on Thursday clocked 26 per cent rise in consolidated net profit at Rs 415 crore for the second quarter ended June 30, buoyed by strong revenue growth.
ACC, controlled by Swiss cement major Holcim, had clocked Rs 328 crore net profit in the same quarter of last year. ACC follows January—December as financial year.
Total consolidated turnover in the quarter rose by 15 per cent to Rs 2,918.98 crore as compared to Rs 2,539.41 crore in the same quarter of last year, it said in a statement.
It sold 6.05 million tonnes (MT) cement during the reporting quarter against 5.93 MT a year ago.
“The quarter witnessed steep escalations in most of our major input costs including slag, fly ash, gypsum and power.
The sharp hike in railway freight rates with effect from March 6, 2012 substantially impacted both inward and outward costs,” ACC said.
“The cement market has been growing steadily and, barring seasonal fluctuations, we expect it to maintain the same course in the near term,” it added.
Meanwhile, Competition Commission of India imposed a Rs 1,147.59 crore penalty on the company last month for its alleged involvement in forming price cartel.
The company, however, is taking steps to file an appeal against the order with the appropriate authority. Hoping it would emerge successful; ACC did not find it necessary to make any provision against that in the balance sheet for the June quarter.
Shares of the company today closed at Rs 1,261 apiece at the BSE, down 1.23 per cent over the previous closing.