ACC's Q1 net up 189%

ACC, India's second largest cement maker, has posted a rise of 189% in its consolidated net profits for the quarter ended March, 2013.

The company, part of the Swiss cement giant Holcim, reported a consolidated net profit of Rs 438.29 crore compared with Rs 151.55 crore in the previous corresponding quarter.

However, such a rise in profitability was due to the additional depreciation of Rs 335.4 crore which ACC had recognised in the first quarter of 2012. And top of it, the company had a write back of tax provision of Rs 140.83 crore during the quarter under review.

On the back of poor demand, ACC's sales turnover declined around 3% to Rs 2,911 crore against Rs 2,997.9 crore last year. Though demand for cement during January-March quarter is generally expected to be robust, this year it turned out to be the other way round. Total sales volume stood at 6.42 million tonne, a decline of 4.5% against 6.72 million tonne in previous corresponding quarter.

In a statement, ACC said, "... the industry did not witness the normal seasonal pattern on account of an overall slowdown in infrastructure and general construction segments. The slackening of demand also saw subdued realisations."

Shares of ACC closed weak on BSE on Friday at Rs 1,229.8, down 1.56%.