ACC reports on merger gains

ACC reports on merger gains
13 April 2006

Indian cement maker ACC, said first-quarter net profit rose 42% due to its merger with two of its own units and higher cement prices. Net profit rose to 2.35 billion rupees ($52.6m), up from 1.66 billion rupees in the year-earlier period. Sales rose 19 per cent to 13.28 billion rupees. ACC merged with its units Bargarh Cement Ltd. and Damodar Cement & Slag Ltd., which helped results. ACC also sold its refractory business as of Sept. 30.  ACC didn’t elaborate on how much it gained from higher cement prices in the quarter.

ACC, which is 34 per cent-owned by Holcim changed its accounting year to coincide with the calendar year from 2006. ACC also said it has sold land in Delhi for 1.4 billion rupees after March 31, which will be reflected in the results for the next quarter.

Demand for cement has grown by 10 per cent during the period, April 2005-January 2006, against a growth of 8.7 per cent in the corresponding period of the previous year, it said in its statement. During 2005, the cement industry has produced and supplied over 136Mt of cement, including export of 9Mt of cement and clinker. The annual capacity of the domestic cement industry has risen to 160Mt a spokesman said.

Published under Cement News