Holcim group companies ACC and Ambuja Cements have posted a sharp fall in their profit during the fourth quarter ending December 31, 2012.
ACC’s consolidated net profit was down 46 per cent to Rs 251 crore (Rs 463 crore), while Ambuja Cements’ profit plunged to Rs 63 crore (Rs 192 crore).
Production of cement at both the companies was almost flat due to difficult market conditions, the companies said.
ACC and Ambuja Cements are to pay final dividend of Rs 19 each.
ACC’s net sales were up two per cent at Rs 2,692 crore (Rs 2,642 crore).
On a standalone basis, net profit dipped 49 per cent to Rs 239 crore (Rs 470 crore) even as sales rose 24 per cent at Rs 3,099 crore (Rs 2,499 crore).
The revenue on standalone basis was higher than consolidated, as the company merged its two subsidiaries ACC Concrete and Encore Cement and Additives with itself.
The company’s cement production for the full-year was almost flat at 24.11 million tonnes (mt) against 23.73 mt recorded in the same period last year. Total expenses in the December quarter increased five per cent to Rs 2,519 crore (Rs 2,396 crore) due to 11 per cent jump in freight cost at Rs 553 crore (Rs 499 crore).
The company has placed orders for major equipment for its expansion project in Jamul.
The project is scheduled for completion in a phased manner by 2015 and will enhance capacity by 5 mt, the company said.
AMBUJA CEMENTS
Ambuja Cements’ net sales increased 7 per cent to Rs 2,899 crore (Rs 2,684 crore). Total expenses increased 13 per cent to Rs 2,989 crore (Rs 2,634 crore). The company recorded other income of Rs 112 crore (Rs 12 crore).
Rising cost of energy, logistics and raw materials is expected to impact margins even as demand is expected to revive, the company said. Ambuja kick-started project ‘Geo20’ to increase use of alternative fuel. This will reduce the dependence on fossil fuel. The project involves a capital expenditure of Rs 200 crore at five integrated plants over the next few years, the company said.
Shares of ACC were up one per cent at Rs 1,345, while Ambuja Cements’ were down three per cent at Rs 200 on Thursday.
suresh.iyengar@thehindu.co.in