ACC Q3 net up 85% at Rs 159 cr

Cement major ACC today said it clocked a nearly 85% jump in consolidated net profit to Rs 159 crore during the quarter ended September 30, 2011, on higher sales.

The company, in which Swiss major Holcim holds a majority stake, had reported a Rs 86 crore net profit for the third quarter last fiscal, it said in a statement. The company follows a January-December financial year.

Its profitability was, however, lower on a month-on-month basis due to rising input costs, mainly of coal, petroleum products, slag and fly ash. During the April-June quarter of the current year, ACC had posted a Rs 328 crore net profit.

The bottomline of the firm would not have looked better had it not received Rs 100 crore in "other operating income" during the quarter, which includes a Rs 62 crore refund on sales tax.

ACC's net sales rose to Rs 2,283 crore during the July-September quarter from Rs 1,759 crore a year ago. Revenues from its cement division grew to Rs 2,142 crore in the reporting quarter, compared to Rs 1,637 crore in the corresponding quarter a year ago. Ready mix concrete contributed the remainder of the sales revenue.

Expecting a pick-up in demand post the traditionally lean monsoon period, the company said this would be reflected in sales during the fourth quarter, though it would not be "robust".

"However in the long-term, we maintain a positive outlook for cement, as we believe the fundamentals of the economy remain strong," it said.