ACC slips after weak Q1 outcome

ACC fell 2.62% to Rs 1,312.40 at 9:45 IST on BSE after consolidated net profit fell 8.8% to Rs 399.85 crore on 2.1% increase in net sales to Rs 2967.14 crore in Q1 March 2014 over Q1 March 2013.

The company made the announcement on Thursday, 24 April 2014.

Meanwhile, the BSE Sensex was down 14.58 points, or 0.06%, to 22,861.96.

On BSE, so far 8,364 shares were traded in the counter, compared with an average volume of 29,433 shares in the past one quarter.

The stock hit a high of Rs 1,345 and a low of Rs 1,305.15 so far during the day. The stock hit a 52-week high of Rs 1,402.35 on 10 April 2014. The stock hit a 52-week low of Rs 912.05 on 28 August 2013.

The stock had outperformed the market over the past one month till 23 April 2014, rising 6.40% compared with the Sensex's 5.15% rise. The scrip had also outperformed the market in past one quarter, rising 32.14% as against Sensex's 7.03% rise.

The large-cap company has an equity capital of Rs 187.75 crore. Face value per share is Rs 10.

ACC said that profit after tax in Q1 March 2014 includes write back of tax of Rs 113 crore on conclusion of earlier years' assessments as compared to Rs 141 crore in this respect in the corresponding quarter of the previous year.

ACC said that in Q1 March 2014, the cement industry did not experience any significant improvement in the pace of infrastructure development and general construction. With no uptrend in the demand for cement, the company's sales volume in Q1 March 2014 was at about the same level as in the corresponding period of previous year. The company's EBITDA declined to Rs 425 crore in Q1 March 2014, from Rs 492 crore in Q1 March 2013.

ACC said that its manufacturing costs faced escalations in the cost of major inputs viz. coal, fly ash and gypsum. On the positive side, the company continued to derive benefit from its ongoing cost leadership efforts and increased sales volume of premium products. ACC added that while it does not foresee any significant improvement in the cement market in the near term, the company will continue to drive its cost leadership and customer excellence programmes to enhance sales realizations and improve margins.

ACC is among lndia's leading manufacturers of cement.

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