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04-20-2012, 07:44 AM #1
ACC's quarterly profit plunges 57%
Cement manufacturer ACC on Thursday reported 56.72 per cent decline in consolidated net profit to Rs 151.55 crore for the January-March quarter due to steep escalations in input costs such as coal, fly ash and gypsum .
It had posted a profit of Rs 350.17 crore in the corresponding period last year.
The company, however, reported 18.6 per cent growth in sales in the quarter at Rs 3,015.22 crore compared Rs 2,541.37 crore in the same period last year.
"While the company benefited from better volumes during the quarter, manufacturing costs and realisations were affected by steep escalations in the cost of inputs such as coal, fly ash and gypsum," ACC said in a statement.
The cost of transportation also rose significantly as a result of hike in rail freight and also diesel prices, it said.
During the current quarter, the company changed, with retrospective effect, its method of providing depreciation on captive power plants from 'straight line' to 'written-down value' method at the rates prescribed in Schedule XIV to the Companies Act, 1956.
"Accordingly, the company has recognised an additional depreciation charge of Rs 341 crore, (including Rs 335 crore related to earlier years disclosed as an exceptional item). As a result, net profit is at Rs 151.55 crore, which otherwise with the earlier method would have been Rs 383 crore," it said.
On a standalone basis, ACC's net profit stood at Rs 155.37 crore during the quarter, as against Rs 350.66 crore, while the sales rose to Rs 2,860.22 crore from Rs 2,382.93 crore in the corresponding period last year.