ACC posts second quarter fall in net profit

ACC posts second quarter fall in net profit
Published: 26 July 2010

Indian cement maker ACC Ltd on Thursday reported more than a 25 per cent dip in consolidated net profit at Rs 349.47 crore (US$74.3m) in its second quarter ended June 30, 2010 as expenditure – mostly on raw materials – increased.

The company, in which Holcim holds a majority stake, reported a net profit of INR470.96 crore in the year-ago period, ACC said in a statement.

Though the net sales of the company during the reporting quarter remained almost stable compared to the corresponding quarter, the total expenditure shot up to INR1720.53 crore from INR1546.74 crore a year ago.

The company said that the rise in expenditure was mainly due to the increased cost of raw material and "other" items, which were up by INR83.39 crore and INR69 crore respectively to INR374.88 crore and INR471.8 crore over the previous year.  ACC, however, did not elaborate on the "other" expenditure.