ACC January-March net profit dips 9 pc to Rs 400 crore

Cement maker ACC today reported an 8.67 per cent dip in consolidated net profit to Rs 400 crore during the January-March quarter on higher input costs and lower realisations.

ACC, which follows a January-December accounting year, had clocked a profit of Rs 438 crore in the corresponding quarter a year earlier, it said in a statement.

"Our manufacturing costs faced escalations in the cost of our major inputs -- namely, coal, fly ash and gypsum," ACC said.

Profit included a tax write-back of Rs 113 crore on conclusion of earlier years' assessments. It was higher at Rs 141 crore in the same quarter of the previous year, ACC said.

Sales volumes remained almost static at 6.48 million tonnes, while turnover rose marginally to Rs 2,967 crore in the quarter compared with Rs 2,906 crore a year earlier.

"In the first quarter, the industry did not experience any significant improvement in the pace of infrastructure development and general construction. With no uptrend in the demand for cement, sales volume was at about the same level as in the corresponding period of previous year," ACC said.

Earnings before interest, taxes, depreciation and amortisation for the quarter were Rs 425 crore as against Rs 492 crore in the first quarter of 2013.

"On the positive side, we continued to derive benefit from our ongoing cost leadership efforts and increased sales volume of premium products," it said.

ACC does not "foresee any significant improvement in the cement market in the near term" but said it would continue to drive cost leadership and customer excellence programmes to enhance sales realisations and improve margins.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Signalling good times, current account deficit is likely to grow from here on

    The current account deficit (CAD) numbers for April-June quarter declined sharply to 1.7 per cent of GDP.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Disruptive innovation in education

The past two weeks had a fair share of interesting ...

Rajgopal Nidamboor

Regain the spirit of focused power

For aeons, the human race has been experimenting with a ...

Gautam Gupta

Manufacturing must keep workers’ welfare in mind

It may be early days yet, but the labour reforms ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture