Bottomline of some cement firms come under pressure
Rising input cost and transportation charges are exerting pressure on the profitability of some cement makers in the country, reports indicate.
For example, the consolidated net profit of ACC, the nation's largest cement maker, declined 46 percent to Rs 251.24 crore for the quarter ending December 31, 2012 from a year ago. But revenue of the firm rose 2 percent to Rs 2,768 crore.
The company's profit came under pressure also because of a change in the method of providing depreciation on fixed assets pertaining to captive power plants, said an ACC spokesman.
Similarly, the net profit of JK Lakshmi Cement fell 16.24 percent to Rs 41.24 crore in the December quarter from a year ago, while revenue rose 12.2 percent to Rs 493.68 crore.
However, some firms managed to post improvement in net profit. For example, Ambuja Cements reported a 5.33 percent rise in its December quarter profit at Rs 1,293.21 crore from a year ago. Revenue increased by 14.3 percent to Rs 9,795.03 crore.
The bottomline of JK Cement, too, saw a 25 percent rise at Rs 54.38 crore in the December quarter. Revenue, at Rs 688.08 crore, was up 12 percent from the same quarter a year ago.