ACC’s March quarter profit falls 4% to Rs226.95 crore on higher tax, lower other operating income
Mumbai: Cement maker ACC Ltd said first quarter profit fell 4% on higher tax expenses and lower other operating income.
Net profit, including those of its units, declined to Rs.226.95 crore in the three months ended 31 March from Rs.236.54 crore a year earlier. Net sales rose 1% to Rs.2,927.38 crore from Rs.2,885.44 crore.
Other operating income fell 68% to Rs.63.22 crore from Rs.194.69 crore. The company had reported a one-time charge of Rs.164.45 crore in the year-earlier March quarter.
Earnings before interest, taxes, depreciation and amortization, or Ebidta, fell 29% to Rs.433.59 crore in the quarter ended 31 March. “Last year the higher operating Ebitda was explained by the fact that it included an accrual of Rs.139.74 crore pursuant to a favourable order from the Jharkhand high court pertaining to sales tax incentives,” the company said in its statement to BSE.
Tax expenses for the company was higher at Rs.90.50 crore for the March quarter from Rs.78.18 crore a year back. Total cement sales for the quarter rose 9% to 6.36 million tonnes.
“While construction activity is picking up especially in infrastructure and housing sectors during the quarter, the demand for cement registered a perceptible increase as compared to the slow pace witnessed in the previous year,” ACC said in its statement to BSE. Even as cement volumes pick up, the company added, realizations in the quarter were down 8% from a year earlier.
On Thursday, ACC gained 0.54% to Rs.1,437.10 on BSE, while the benchmark Sensex lost 1.77% to close at 25,603.10 points.