MUMBAI, APR 28: Cement giant Associated Cement Companies (ACC) has been able to post a higher profit thanks to sale of assets. The company managed to push up the net profit by 322 per cent to Rs 56.84 crore for the year ended March 1999 as compared to the previous year's profit of Rs 13.44 crore. The turnover of the cement firm was Rs 2,606.61 crore as against Rs 2,400.38 crore in the previous fiscal.Despite the `higher' profits, the company has maintained the dividend at 15 per cent only on an equity base of Rs 136.84 crore. In fiscal 1998-99, the company's profits were inflated by other income which stood at Rs 119.04 crore. The company has sold two of its power plants to Tata Electric, thereby enabling it to increase the profits in a recession-hit year. Had the company not included the `other income', the company would have made a loss of Rs 62.20 crore for the year.According to the company, there was an increase in the sales volume from 9.42 million tonnes in the previous year to 9.98 mt, anincrease of six per cent despite the continuing supply overhang in the cement industry and the economic slowdown.The outgo on account of depreciation and interest was Rs 103.76 crore and Rs 162.45 crore respectively in the last fiscal, which the company statement explained was due to commissioning of several projects during the year. In order to retain its market share, ACC has planned to increase its production capacity to 15 million tonnes per annum by the year 2001. ``Today we have a capacity of 12 million tonnes on ground which will be increased to 15 million tonnes via capacity expansion of existing units as well as acquisitions,'' S Ganguly, vice chairman, said here today after the board meeting to consider the financial results.``On the capacity side, we are the largest in the market,'' he said, adding ACC had a market share of 55 per cent in the blended cements category. He said that ACC was looking at a few units for acquisitions, but did not elaborate further.Ganguly stated that ACC hadresolved to increase its ready mix concrete capacity, which constitutes two per cent of the company's product portfolio, by 200 per cent by establishing units at eight different locations in the country this fiscal in addition to the existing eight.There was a capitalisation of about Rs 456 crore in ACCs gross block from Rs 1,800 crore to Rs 2,200 crore in the current year, he revealed. This in addition to the forthcoming Rs 100 crore preference share issue would help ACC in consolidating its `war chest'. The activities of its research and consultancy division covered a variety of services and the total billing was maintained at the previous year's level of Rs 55 crore. The company's board has also approved a Rs 100-crore preference share issue this year.The production of cement increased by three per cent during the year, sales increased by nearly four per cent. Exports of cement during the year was 0.16 mt compared to 0.19 mt in the previous year. During 1998-99, the new Rs 246 crore 1.2 mtpa (milliontonnes per annum) clinkering unit at Kymore was commissioned, while a new cement grinding facility with a capacity of 0.6 mtpa set up at a cost of Rs 70 crore in Uttar Pradesh also commenced commercial production last fiscal.
