MUMBAI, JANUARY 19: Cement major, Associated Cement Companies today reported a loss of Rs 9.96 crore for the nine month period ending December 31, 1999 as against a profit of Rs 55.12 crore in the corresponding period of the previous year.The company said, "despite the 5.8 per cent growth in sales volume during the quarter ended December 31, 1999 as compared to the corresponding period of the previous year, there has been a decline in price realisation of around 4.7 per cent during the same period".During the nine month period, the ACC reported sales volume (including traded cement) of 76.83 lakh tonnes compared to 70.34 lakh tonnes in the same period previous year.Other income of Rs 54.66 crore (Rs 23.30 crore previous year) includes non-recurring items on account of refund received/receivable from government on account of service tax arising out of favourable decision by the Supreme Court.While cement prices in most Indian regions remained flat in the third quarter of 1999 compared to the year-ago quarter, competition has driven prices down 20-25 per cent in India's eastern region. ACC, which sells nearly 20 per cent of its 12 million tonne production in the east, is among the hardest hit, analysts said.Prices in December 1999 in key consuming cities of Calcutta and Patna were down by Rs 500-700 per tonne, according to the Cement Manufacturers' Association (CMA). French cement firm Lafarge and Raymond Ltd are among the major cement producers in the eastern region."The entry of Lafarge last year has changed equations in eastern India. Prices have crashed and everybody is feeling the pinch," said R Srinivasan, analyst with Inquire Indian Equity Research.But analysts said succeeding quarters for ACC could be better as the benefits from its recent association with Gujarat Ambuja Cements Ltd start flowing in. Gujarat Ambuja, India's most profitable cement company, bought a 7.2 per cent stake in ACC in December and has two directors on ACC's board.
