ACC’s profit before exceptional items and taxes climbs 25%

ACC’s profit before exceptional items and taxes climbs 25%

Mumbai: ACC Ltd, India’s largest cement manufacturer, declared that its net profit before exceptional items and taxes for the April-June quarter — the company’s second quarter of the year — rose 25.3% to Rs511.63 crore from Rs408.21 crore in the corresponding quarter of 2006 on the back of a higher price of cement. However, the company’s net profit for the quarter declined 15% to Rs351.24 crore when compared to the year-ago period.

The result, however, is not strictly comparable as the company had a one time income of Rs146.62 crore during the April-June 2006 quarter due to sale of land.

The company’s income from operations grew 29.52% to Rs2,106.06 crore during the quarter under review.

ACC shares closed at Rs1150.3 on the Bombay Stock Exchange, up 1.52% on a day the Sensex gained 1.63%. “The results are in line with our expectations, “ said Rupesh Sankhe, a research analyst who tracks the ACC stock for ICICI Direct, an online brokerage. “The price realization grew 10.5%, which has driven the profits," added Sankhe.

ACC’s sold 5.29 million tonnes of cement in the quarter, up 12% over the corresponding quarter of 2006. Interest for the quarter stood at Rs2.27 crore, down 115% from Rs14.74 crore during the same quarter last year.