Cement manufacturer ACC has reported a consolidated net profit of Rs 159 crore for the third quarter ending September 30, 2011 due to volume growth and increase in segment-wise revenues. The company had reported a net profit of Rs 86 crore in the corresponding period last year.
The sale volume of cement increased to 5.6 million tonnes in this quarter from 4.8 million tonnes in the same quarter last year. The net sales of ACC in the third quarter of 2011 were Rs 2,283 crore, while the net sales of Rs 1,759 crore in the same quarter last year.
However, “profitability was lower as compared to the immediate previous quarter on account of ascending input costs, particularly of coal, petroleum products, slag and fly ash,” said a release from the company.
The results for the quarter and nine months ended September 30, 2011 are not strictly comparable with the corresponding previous period, the company said. The reasons for this include its 100 per cent investment in Encore Cement & Additives Pvt Ltd, from January 28, 2010, and its 45 per cent investment in Asian Concretes and Cements Pvt Ltd, from April 1, 2010.
And finally, ACC Concrete Ltd, a wholly-owned subsidiary of the company has acquired 40 per cent stake in Aakaash Manufacturing Pvt Ltd from March 25, 2011 for a total consideration of Rs 558.62 lakh. Aakaash Manufacturing is engaged in manufacturing of ready mixed concrete. The effect of the above on the results was not significant, the company said.
Coal supply
“The supply of domestic coal, our principal source of energy, has been grim, affecting cement as well as the power sector. The overall outlook for coal in terms of both availability and pricing is not favourable,” the company said.
ACC feels that there is a possibility for a pick-up in demand for cement post monsoon with a similar impact on their despatches in the coming months. But this may not be robust due to concerns of a slowdown in economic growth. The release also said that production from the cement projects in Wadi and the new line in Chanda have both stabilised.
On the Bombay Stock Exchange (BSE), the ACC stock closed marginally down, at Rs 1,183, on Tuesday.