ACC and Ambuja Cements, part of Holcim Group, reported a mixed financial performance in the second quarter of 2014. While ACC registered seven per cent fall in net profit at `243 crore (`262 crore), Ambuja Cements’ was up 26 per cent largely due to write back of `79 crore provision made for tax liability.
ACC has declared an interim dividend of `15 and Ambuja Cements will pay `1.80 per share.
ACC’s net sales were up eight per cent at `3,009 crore (`2,790 crore). Cement production was increased four per cent at 6.35 million tonnes (6.12 mt). Earnings before interest, tax, depreciation and amortisation was down seven per cent at `452 crore (`490 crore) as the company was not able to pass on the incremental cost.
Operational cost jumped 10 per cent to `2,748 crore (`2,497 crore) largely due to higher freight and power cost which rose 17 per cent and five per cent to `670 crore and `621 crore.
Manufacturing and distribution costs continue to face escalation, though the company derived some benefits from the ongoing cost control measures and increase sale of premium products, said ACC.
Harish Badami will replace Kuldip Kaura as CEO and Managing Director on August 13. ML Narula, who has been associated with the company for five decades in various senior positions, will step down from the Board on Friday.
Cement production at Ambuja was up eight per cent at 5.79 mt (5.38 mt) while Ebitda increased 12 per cent to `588 crore. Ambuja expects construction activities to pick up post-Budget announcements even as the macro-economic condition remains challenging.
Shares of Ambuja Cement and ACC were up one per cent and 0.38 per cent at `218 and `1460 on Thursday.