ACC Cement sales dip while profits merely 3.3% up

2013: Disappointing year for ACC; Says no indications for improvement in near-term

ACC, India's second largest cement maker, has ended the year 2013 on a disappointing note.

 

Amid sluggish demand scenario, the company could barely manage an increase of a mere 3.3% in its net profit for the calendar year 2013. It posted a net profit of Rs 1,094.67 crore against Rs 1,059.28 crore in the previous year.

 

What is more worrying for the company is that it sold less cement in 2013 than what it did in 2012. This comes as a major jolt for the cement giant which saw its cement sales volume dropping to 23.93 million tonne compared with 24.11 million tonne. It not only impacted its bottom-line growth but also hit its revenues.

 

ACC's sales turnover slipped to Rs 10,908.41 crore in 2013 against Rs 11,130.56 crore in the previous year.

 

"The economic environment in the country was sluggish, thus impacting the demand for cement and concrete. As a result, the company's cement volumes remained almost flat," said ACC in a statement.

 

Though sales realisations were lower, the company was able to offset inflationary pressure in the cost of major inputs by managing its operating costs through improvements in manufacturing, sales, logistics and procurement processes.

 

In its outlook too, the company appears not enthusiastic for demand growth going forward. "Based on current demand indications, we do not foresee any significant improvement in the cement market in the near term.

 

On BSE, shares of ACC closed at Rs 1,018.8, up 1.07%.