The Hindu Business Line : ACC clocks 54.5% rise in Q1 net

Mumbai April 19 ACC Ltd has said that net profit for the first quarter of the fiscal rose 54.5 per cent and has attributed the growth to stable cement prices, higher sales of blended cement and cost reduction measures.

Net profit for the quarter ended March 31, 2007 was reported at Rs 363.75 crore, up from Rs 235.42 crore in the corresponding previous period.

A one-time gain of Rs 19.96 crore from sale of a subsidiary during the quarter also helped boost the bottomline.

Net sales at Rs 1,674 crore (Rs 1,342 crore) rose 24.8 per cent, while total expenditure rose 14.5 per cent to Rs 1167.69 crore (Rs 1,015.87 crore). Profit before interest, depreciation, exceptional items and tax, was up by 48.8 per cent to Rs 535.53 crore (Rs 359.88 crore).

This was due to improvements through product optimisation and higher realisation, apart from higher sales of blended cement, according to the company.

Interest costs were lower at Rs 3.99 crore (Rs 19.37 crore). The selling price of cement, net of excise duty, has remained stable during the quarter consequent to the industry entering a phase of price stability since the last quarter of 2006, the company said.

READYMIX CONCRETE

The ACC board of directors has approved the sale and transfer of the readymix concrete business to a wholly owned subsidiary called ACC Concrete Ltd.

The readymix concrete business accounted for Rs 80.2 crore revenue during the quarter under consideration, against Rs 71.42 crore earlier.

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