ACC Ltd, a Holcim Group company, has reported an 18 per cent increase in net profit in the December quarter at ₹326 crore, largely due to a tax write-back of ₹184 crore.
In the year-ago quarter, the company had reported ₹276-crore profit.
The board of directors has recommended a final dividend of ₹19 a share, leading to a total outgo of ₹428 crore. The total dividend payout for the whole year (2014) was ₹34 a share.
Net sales were up 3 per cent at ₹2,762 crore (₹2,687 crore). The company’s cement production was down 1 per cent at 5.77 million tonnes (mt) during the quarter compared with 5.85 mt a year earlier.
Realisation during the period was up 4 per cent at ₹239 per 50 kg bag against ₹229. EPS stood at ₹17.33 in the December quarter against ₹14.65.
The profit before other income and finance cost was down 47 per cent at ₹110 crore. Cost of operations was up 6 per cent to ₹2,727 crore (₹2,580 crore) due to suspension of limestone mining in Chaibasa, (Jharkhand) and Bargarh (Odisha).
However, ACC expects to restart mining at both the mines as the new Government Ordinance on mining provides provision for automatic renewal of captive mines lease for 50 years from the grant of original licence. With this provision, the company’s licence stands renewed up to 2030, it said in a statement.
In 2014, ACC’s net profit was up 6 per cent to ₹1,162 crore against ₹1,095 crore in the previous year.
Sales rose 5 per cent to ₹11,480 crore, from ₹10,889 crore. Cement sales increased marginally by 1 per cent to 24.21 mt, from 23.93 mt.
The company follows calendar year for accounting purposes.
Last year, cement prices remained under pressure, and increased by just 4 per cent amid weak demand and excess supply.
Shrenik Gujrathi, Senior Research Analyst at Angel Broking, said volume growth of ACC may be limited as the first phase of capacity addition of 2.5 mt will go on stream only by the end of this year.
However, he added, the capacity utilisation and realisation will improve with pent-up demand from the Government spending on infrastructure projects.
On Tuesday, the company’s stock ended trade at ₹1,510.60 on BSE, down 1.02 per cent from the previous close.