Associated Cement Companies (ACC) posted a sharp growth in net profit for the second quarter as firm prices and gains from a non-operating transaction boosted the profitability of India’s second largest cement maker. ACC’s net profit of Rs 406 crore for the quarter ended June 30, ’06 includes an exceptional item of Rs 146 crore from company’s land sale. The company’s sales grew 29 per cent to Rs 1462 crore in the same period.
During the period, ACC also sold certain non-core activities like refractory business and consolidated its cement business by merging Bargarh Cement and Damodhar Cement. On a consolidated basis, the company’s net profit rose to Rs 406 crore in the second-quarter ended June.
Analysts said that ACC’s performance was guided to a large extent by the steady increase in cement prices over the last six months. Lower interest rates and higher demand for houses have pulled up cement prices by over 20 per cent in the same period. The market expects the strong trend to continue as demand is likely to be sustained due to increased state-aided infrastructure projects.