ACC net up 84%

ACC, a part of Swiss major Holcim, on Tuesday reported September quarter earnings that missed analysts’ estimates.

The 30-million-tonne cement maker posted an 84.5 per cent rise in net profit at Rs 159.31 crore, compared to Rs 86.31 crore in the same period last year. However, the profit included other income. According to analysts, barring the additional income, net profit stood at less than Rs 125 crore, way below their estimates of Rs 170 crore.

Net sales were 30 per cent higher at Rs 228.34 crore, against Rs 175.91 crore. Higher prices and sales volume could not help the company meet analysts’ expectations. “Input costs were far higher than expected. This is mainly due to coal and employees costs,” analysts said.

“The supply of domestic coal, our principal source of energy, has been grim, affecting cement as well as the power sector. The overall outlook for coal, in terms of both availability and pricing, is not favourable,” ACC said.

Sales grew to 5.69 mt of cement during the July-September period, against 4.83 mt, mainly on account of fresh capacities getting stabilised.

ACC said, “A pick-up in demand for cement is likely post-monsoon... We do not expect it to be very robust in view of concerns about a slowdown in economic growth.”

On the Bombay Stock Exchange, shares in ACC closed one per cent down at Rs 1,183.95.