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Business News/ Companies / ACC posts 51% drop in net profit
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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

Total expenses increased 7%, to Rs2,430 crore. Photo: MintPremium
Total expenses increased 7%, to Rs2,430 crore. Photo: Mint

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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Published: 23 Oct 2013, 02:56 PM IST
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