ACC Reports Dip in Profits

ACC Reports Dip in Profits

Cement major ACC has reported a 37 per cent dip in its net profit in the June quarter, at Rs 262 crore, compared to Rs 415 crore in the same quarter last year. The dip is attributed to lower sales at Rs 2,795 crore (compared to Rs 2,899 crore last year). Although, the cement production was 70, 000tonnes higher, the company suffered due to high operating costs and inability to pass on the burden on its consumers. There was a 29 per cent drop in EBIT and the depreciation and amortisation was at Rs 490 crore.

ACC has also set aside ten per cent (Rs 115 crore) of the penalty levied by the Competition Commission of India in a cartelisation case last year. The amount has been deposited in the as a fixed deposit in the bank in favour of the Competition Appellate Tribunal.

The company expects profitability to improve from the December quarter driven by pre-election demand and improvement in rural spending, due to the positive impact of a good monsoon.

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