ACC posts 51% drop in net profit
Net sales in September quarter at `2,508.65 cr, compared to `2,542.37 cr for the same period last year
Mumbai: ACC Ltd, India’s second largest cement maker, reported a 51% drop in net profit to ₹ 118.90 crore for the three months ended 30 September, as compared to a year ago, as the market remained sluggish amid the economic downturn.
“Reducing profitability during the quarter is attributed to sluggish market conditions and lower utilizations," the company said in a statement on Wednesday.
Net sales in the July-September quarter were ₹ 2,508.65 crore, compared to ₹ 2,542.37 crore for the same period last year, down 1.3%.
“The operating Ebitda (earnings before interest, taxes, depreciation and amortization, a measure of operating profitability) in the third quarter declined to ₹ 268.56 crore against ₹ 466.07 crore in the corresponding quarter of the preceding year," the company said.
Total expenses increased 7%, to ₹ 2,430 crore.
On 19 October, UltraTech Cement Ltd, India’s biggest cement maker, reported a 52% drop in second quarter net profit because of a lower selling price and subdued demand.
UltraTech, a part of the Aditya Birla Group, reported a net profit of ₹ 264.11 crore for the quarter ended 30 September compared with ₹ 550.03 crore in the year-ago period. Sales declined 5% to ₹ 4, 502.10 crore.
Cement demand remained sluggish on account of a prolonged monsoon season and low off-take from the infrastructure and housing sectors, the company said.
“We see a gradual but slow improvement in demand for cement and in the overall economy which may need some more time to recover" said ACC.
SShares of ACC gained 1.82% to ₹ 1156.95 on Wednesday, while the benchmark Sensex closed down 0.47% to 20,767.88 points.
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