Acc Net Profit Plunges 66% To Rs 77crore

ACC, the countrys largest cement producer, yesterday announced a 66.08 per cent drop in its net profit to Rs 76.92 crore in fiscal 1996-97. Its net profit in the previous year was Rs 226.78 crore. The company attributed the slump in profits to the recession affecting the cement industry.

The company declared a dividend of 30 per cent, down from the previous years 40 per cent.

The companys gross sales grew by 5.8 per cent in the whole year to Rs 2,469.22 crore compared with Rs 2,333.46 crore in 1995-96. Industry analysts said the sluggish sales growth was owing to a sharp drop in cement demand.

 

ACCs performance in the second half of the previous fiscal was worse than that in the first half. Its net profit in the second half was Rs 21.8 crore, down from Rs 55.05 crore in April-September 1996.

However, sales grew faster in the second half: sales were up to Rs 1247.76 crore in the second half compared with Rs 1,221.46 crore in the first half.

The companys tax outgo was lower by 79.66 per cent and stood at Rs 12 crore as against Rs 59 crore in 1995-96. The lower tax provision is because of lower profits, industry sources said.

Its income from dividend as well as other income dropped during 1996-97. While income from dividend dropped to Rs 19.23 crore from Rs 26.36 crore, its other income dropped to Rs 38.81 crore from Rs 63.01 crore in 1995-96.

ACCs operating profits, too, dropped by 35.67 per cent to Rs 286.56 crore from Rs 445.51 crore in 1995-96. The companys interest costs increased by 20 per cent to Rs 118.3 crore from Rs 98.09 crore in 1995-96.

The companys gross profits dropped by 35.68 per cent to Rs 168.27 crore from Rs 347.42 crore in 1995-96.

The profit before tax and extraordinary items during the year was Rs 88.92 crore against Rs 289.24 crore a year ago. The company had an extraordinary item cost of Rs 2.04 crore in 1995-96 as against nil in 1996-97. The PBT in 1996-97 was Rs 88.92 crore, down 68.9% from Rs 286.28 crore in 1995-96.

The companys paid-up capital had gone up in 1996-97 to Rs 136.83 crore from Rs 84.65 crore on account of the 3:5 bonus issue during the year.