Mumbai, Jan. 17: The Associated Cement Companies (ACC) today posted a lower-than-expected 19.37 per cent rise in third-quarter net profit at Rs 20.21 crore against Rs 16.93 crore in the corresponding period of 2001-02.
The quarter saw net sales declining by around 1.5 per cent at Rs 801.19 crore against Rs 812.99 crore in the year-ago period. In volume terms, sale of cement for the quarter rose to Rs 31.89 lakh tonnes against Rs 29.49 lakh tonnes in the year-ago period, thus indicating the pricing pressure on the commodity. With only few expecting a recovery in prices, the ACC scrip took a beating at the bourses after the results were announced.
The decline in net profits was largely due to exceptional items that included Rs 10.21 crore as write-down of value of assets and Rs 3.75 crore towards provision for contingencies.
ACC, while declaring its third quarter results today, said it has divested its investments in equity shares of International Ferrites and further divestment in Bridgestone ACC India will be completed in the fourth quarter of the current financial year.
ACC pointed out that sale of cement increased by 4.3 per cent to 32.88 lakh tonnes in the third quarter compared with 31.52 lakh tonnes in the corresponding previous period.