ACC, manufacturer of cement, reported net profit of Rs 350.17 crore for the first quarter ended March 31, 2011, down 10.8% from Rs 392.8 crore in the same quarter quarter last year.
Revenue for the quarter was up 14% at Rs 2,556.2 crore, from Rs 2,240.3 crore in the corresponding quarter last year.
The company’s operations benefited from better volumes, realisations remained challenged by steep escalations in input costs, said the company in a filing to the Bombay Stock Exchange. Manufacturing costs rose sharply as a result on increase in cost of energy, fuel and raw materials like fly ash and slag. Coal also became dearer. Consequently profit before tax for the quarter declined Rs 481.2 crore as compared to Rs 563.58 crore in the first quarter.
However, the company said that it continues to maintain a healthy outlook for overall growth in demand for cement in the national economy during the year.