Acc Net At Rs 43.95 Crore In First Quarter

The Associated Cement Companies' (ACC) improved performance in the fourth quarter of last year continued in the first quarter of 2000-01 as well, with the company posting a Rs 43.95 crore net profit for the quarter against a Rs 9.5 crore loss in the same period last year.

However, the reported profit was lower than analysts' expectation of over Rs 50 crore due to a deferred tax provision of Rs 27.7 crore. The ACC stock nevertheless, closed higher at Rs 146.8 crore after opening at Rs 142.50 on the Bombay Stock Exchange.

Net sales jumped 13 per cent during the period to Rs 842.51 crore from Rs 746.16 crore in the first quarter last year despite aggregate sale of cement in volume terms being marginally lower.

According to the company, the improved performance was due to "savings on account of improvement in efficiencies, ongoing cost reduction measures and marginally improved sales volume and better realisations."

According to cement sector analysts, "the rise in profit was due to higher price realisations brought about by the informal alliance among several leading cement companies." Over the last six months, cement prices has skyrocketed 50 per cent in most of the domestic markets.

As a result, operating profit before interest and depreciation during the quarter shot up 128 per cent to Rs 152.09 crore compared with Rs 66.64 crore in the corresponding quarter of the previous year. ACC also pruned its interest costs to Rs 37.22 crore compared with Rs 41.38 crore in the first quarter last year.

The company's capex plans include a new 2.6 metric million tonne per annum project at Wadi, which is under stabilisation and the construction of a 15 mega watt thermal power plant each at Chanda and Madukkarai cement works.

The company has divested its holdings in Floatglass India and incurred a loss of Rs 3 crore, which has already been provided in the accounts of earlier years.