ACC net profit down on high input costs
Escalating input costs saw ACC report a drop of 11 per cent in its consolidated net profit for the first quarter ended March 2011 at INR350.17 crore against INR392.88 crore in the year-ago period. This is despite an improvement in volumes at 6.16Mt (5.58Mt in the year ago period) during the quarter.
Turnover was up at INR2556.21 crore against INR2240.33 crore while the profit before tax was lower at INR481.21 crore against INR563.58 crore.
According to a company statement, while its operations benefited from better volumes, realisations remained challenged by steep escalations in input costs.
Manufacturing costs rose sharply due to rise in the cost of energy, fuel and raw materials like fly ash and slag. Coal became dearer in the domestic and international markets and transport costs too rose and as a consequence, the profit before tax and the net profit declined.
The company said it continued to maintain a healthy outlook for overall demand growth.
During the quarter, the company commissioned 7000tpd capacity at its Chanda (Maharashtra) unit. Published under Cement News
