| The Associated Cement Companies (ACC) has managed to post a better performance in the second quarter of the current financial year owing to profit from sale of its refractory business.
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| The company posted a 154 per cent increase in its net profit at Rs 203.70 crore for the second quarter ended September 30, 2005 against Rs 80.20 crore in the corresponding quarter of the last year.
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| Net sales grew by 11.74 per cent from Rs 949.79 to Rs 1061.36 crore, while expenditure went up by 15.69 per from Rs 782.22 crore to Rs 905.01 crore.
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| Profit after minority interest and before tax stood at Rs 108.56 crore, 14.01 per cent lower than Rs 125.61 crore in the corresponding period of the last year.
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| However, profit of Rs 172.80 crore from the sale of refractory business to ICICI Venture helped the company to post a net profit of Rs 203.70 crore.
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| Otherwise, net profit in the July-September quarter would have been lower than the comparable previous period. ACC had sold its refractory business as its largest shareholder Holcim did not want to continue with non-core business.
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| The company said the increase in cost of inputs together with change in railway freight classification, increase in royalty on lime stone has resulted in higher cost of production.
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| “Although the impact has been partly offset by higher volumes and improved realisation, this has resulted in lower profit before interest, depreciation, exceptional items and tax,” it added.
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| The ACC stock today closed at Rs 442 , 5.24 per cent lower than the previous closing of Rs 466.45, on a falling Bombay market. Sales volume has increased by 4 per cent to 3.94 million tonne against 3.80 million tonne for the corresponding quarter last year. Sale of cement during Q2FY06 was adversely affected due to floods and heavy rains in many parts of the country.
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| The cement major has registered an increase of 7 per cent in sale of cement in the first half of the current fiscal at 8.38 million tonne against 7.82 million tonne for the corresponding period last year. |
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