NEW GOVERNMENT
COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES
SEARCH REDIFF

ACC Q2 net profit down 86 per cent at Rs 16.7 million

Cement major Associated Cement Company Limited today reported 86.76 per cent decline in net profit at Rs 16.7 million during the second quarter ended September 30, 1999 compared with Rs 126.2 million in the same quarter of the previous year.

The performance of the company during the quarter was not entirely satisfactory.

Despite over 11 per cent growth in sales volume to Rs 13.28 billion from Rs 11.91 billion during April-September this year, cement price realisation declined by nearly four per cent, company sources said.

However, the company was optimistic that sustained demand growth was expected to continue with better price realisation in the coming months.

Net sales during the quarter increased to Rs 6.27 billion from Rs 5.75 billion and other income to Rs 214 million (Rs 272 million in the first half of 1999-2000) from Rs 175 million (Rs 243.7 million in the first half of 1998-99) while expenses increased significantly to Rs 5.84 billion (Rs 12.15 billion) from Rs 5.22 billion (Rs 10.73 billion).

After interest payment of Rs 379.3 million (Rs 413.6 million last year), gross profit during the quarter came down to Rs 298.1 million from Rs 404.4 million. In the first half, the current fiscal gross profit stood at Rs 650.3 million against Rs 746.4 million in 1998-99.

Sources informed that the company has commissioned its new cement plant at Wadi in Karnataka with a capacity of two million tonnes per annum.

They further said after an initial decline in the first quarter, the refractory business has improved during the second quarter both in volume and turnover.

UNI

Business