ACC: Slump in sales

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The stock was the biggest loser among the Sensex scrips, down by over 20 per cent last week. The selloff was evident from a 64 per cent jump in the combined trading volumes on the BSE and the NSE. The selloff trigger came from the company's marginally slower growth rate in sales (up 22 per cent compared with over 24 per cent year-on-year growth during the past five quarters in a row.)

The net profit of the company has increased by 30 per cent to Rs 292.42 crore (Rs 224.81 crore) in the September quarter against a 15 per cent decline during the quarter ended June 2007. In the previous four quarters, between June 2006 and March 2007, the company had posted over 100 per cent growth in net profit.

On a sequential basis, the net profit of the company declined by 17 per cent, while net sales declined by 10 per cent. The net profit margins (NPM) have increased from 16.51 per cent in the September 2006 quarter to 17.86 per cent in the September 2007 quarter, while operating profit margins (OPM) improved by almost 100 basis points from 28.43 per cent to 29.38 per cent during the quarter.