ACC net profit falls by 61%

Cement major ACC Ltd has posted a 61.47 per cent fall in net profit (excluding profit on sale of asset) to Rs 30.9 crore in the second quart...

Cement major ACC Ltd has posted a 61.47 per cent fall in net profit (excluding profit on sale of asset) to Rs 30.9 crore in the second quarter ended September 2005 from Rs 80.2 crore in the same quarter of last year.

However, the company reported a 153 per cent growth in net profit to Rs 203.70 crore (including the sale of its refractory business for a consideration of Rs 172.80 crore) in the second quarter against Rs 80.20 crore.

ACC shares plunged 5.7 per cent to Rs 439.50 following dismal Q2 results that hit the market in the latter part of trading.

During the quarter under review, sales volume grew by 4per cent to 3.94 million tonnes while sales by value grew by 12 per cent. However, the commensurate increase in raw material costs and freight charges among others, saw operating margins decline of 340 basis points to 17.8 per cent from 21.2 per cent last year. The freight cost on cement went up by 30 per cent to Rs 165.08 crore, while that of raw material prices shot up to Rs 183.9 crore from Rs 170 crore.