ACC net down on high input costs

Steep escalation in input and transport costs pulled down cement major ACCs net profit after tax by 10.87 per cent to Rs 350.17 crore in Q1 FY 11 against Rs 392.88 crore in the year-ago period. Sales turnover,however,increased to Rs 2,556.21-crore in the January-March 2011 quarter as against Rs 2,240.33-crore in the year-ago period. While the companys operations benefited from better volumes,realisations remained challenged by steep escalations in input costs, the cement major said. Manufacturing costs rose sharply as a result of increases in the cost of energy,fuel and raw materials like fly ash and slag. Coal became dearer in both the national and international markets while transport costs also shot up,it said. On future outlook,the company said that it continued to maintain a healthy outlook for overall growth in demand for cement in the national economy during the year. With increased availability of cement from our newly-expanded plants at Wadi and Chanda,we expect the company will remain well-placed to benefit from this growth, the company said.

Ambuja Cements net declines

Mumbai: Ambuja Cements Ltd ACL today announced that its net profit declined by 11.8 per cent to Rs 407 crore in the quarter ended March 2011 as against Rs 462 crore in the same period last year. The companys sales rose 10.90 per cent to Rs 2,207 crore in the quarter ended March 2011 as against Rs 1,990.16 crore during the previous quarter ended March 2010,a company statement said. ACL said that the production of cement for the quarter ended March 2011 went up by 4.8 per cent to 5.50 million tonnes compared to 5.33 million tonnes for the same quarter last year. The overall sales volume of cement and saleable clinker increased by 6.8 per cent on year from 5.28 to 5.64 million tonnes including 5.5 per cent rise in the domestic cement sales volumes. The operating cost increased substantially during the quarter by increase in power and fuel costs on account of sharp rise in coal prices,higher grid tariff and increase in freight rates.