Associated Cement Companies (ACC) reported a 182 per cent increase in net profit to Rs78.6 crore (US$11.72m) for the second quarter ended September 30 (Rs 27.9 crore for the corresponding quarter of the previous year). Total income grew by 19 per cent to Rs918.96 crore (Rs774.69 crore).
Cement sales during the quarter under review was 37.3 lakh tonne (3.723Mt). However, the increase in turnover was a result of improved price realisation over the last year, an ACC release said.
The good performance comes on the back of the strong results from Gujarat Ambuja Cements (GACL) which posted a 478 per cent rise in consolidated net profit at Rs 100.99 crore for the quarter under review (Rs17.48 crore). Incidentally, GACL holds around 13 per cent stake in ACC.
In the case of ACC, the increase in price of coal, gypsum, diesel & freight was partly neutralised through improved operating efficiencies. Interest cost came down by 19 per cent to Rs19.7 crore following the reduction in interest rates and improved financial and working capital management, the release said.
In the context of new projects and growth, the company has informed that its modernisation project at Chaibasa, including installation of a 15-mw captive power plant and augmenting of grinding capacity at Gagal are progressing as per schedule.
It has also entered into an agreement with Tata Power to acquire with effect from July 1, 2004, 75-mw power generating capacity (CPP) at Wadi, at a cost of Rs238 crore. The acquisition is subject to requisite approvals.