ACC slips after weak Q2 results

ACC fell 0.89% to Rs 1,441.85 at 14:10 IST on BSE after the company reported weak Q2 June 2014 results during trading hours today, 24 July 2014.

Meanwhile, the BSE Sensex was up 18.19 points, or 0.07%, to 26,165.52.

On BSE, so far 36,000 lakh shares were traded in the counter, compared with an average volume of 29,119 shares in the past one quarter.

The stock hit a high of Rs 1,462.95 and a low of Rs 1,430.10 so far during the day. The stock hit a record high of Rs 1,524.45 on 9 June 2014. The stock hit a 52-week low of Rs 912.05 on 28 August 2013.

The stock had underperformed the market over the past one month till 23 July 2014, falling 0.99% compared with 4.46% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 7.94% as against Sensex's 14.30% rise.

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

On a consolidated basis, ACC's net profit fell 7.11% to Rs 243.15 crore on 7.49% increase in total income to Rs 3097.43 crore in Q2 June 2014 over Q2 June 2013.

Operating earnings before interest taxes depreciation and amortization (EBITDA) fell 7.75% to Rs 452.12 crore in Q2 June 2014 over Q2 June 2013.

Total cement sales volume rose 3.76% to 6.35 million tonnes in Q2 June 2014 over Q2 June 2013.

Manufacturing and distribution costs continued to face escalation, though the company derived some benefits from the ongoing cost leadership programme and an increase in the sales of premium products, ACC said in a statement.

Demand for cement showed some improvement and the company's overall sales volumes during the quarter improved by 4%, as compared to the corresponding period of the previous year. The company expects the positive trend in demand for cement to continue as a result of government's emphasis on housing and infrastructure development, the company said.

As announced earlier, Mr Kuldip Kaura, CEO & Managing Director, demits office on 12 August 2014. The board placed on record its appreciation of his substantial contribution to the company which will enhance and sustain its competitiveness. As announced earlier, Harish Badami will join ACC as CEO & Managing Director designate on 1 August 2014 and subsequently assume office as CEO & Managing Director with effect from 13 August 2014. The board has also recorded its appreciation of the contribution of M L Narula who has stepped down from the board of the company.

ACC is India's foremost manufacturer of cement and ready mixed concrete with a countrywide network of factories and sales offices. ACC is acknowledged as a pioneer and trendsetter in cement and concrete technology. ACC is part of the worldwide Holcim Group.

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