ACC, Ambuja slump on non-operational boost in earnings

Reuters Market Eye - Shares in ACC Ltd and Ambuja Cements India Ltd fall even as their earnings beat forecasts as dealers say other income and tax credit contributed significantly to their net profits.

ACC falls 3.6 percent even after reporting on Thursday March-quarter net profit of 3.99 billion rupees ($65.35 million), above consensus forecasts for 3.37 billion rupees.

But dealers worry about the impact from other income, which jumped 154 percent to 1.08 billion rupees from a year earlier.

Ambuja Cement is down 4.2 percent after the company reported on Friday a forecast-beating 6.6 percent rise in quarterly profit from a year earlier.

Ambuja's net profit was helped after other income rose by 53.2 percent to 1.32 billion rupees from a year earlier, according to company's filing.

Ambuja's shares had initially risen 1 percent to a record high of 221 rupees. ($1 = 61.0550 rupees)

(abhishek.vishnoi@thomsonreuters.com / abhishek.vishnoi.thomsonreuters.com@reuters.net)