Holcim group companies ACC and Ambuja Cement on Thursday announced their results for the quarter ended June 30. ACC?s net profit dipped 26% because of logistic problems whereas Ambuja Cement reported a growth of 21% in its net profit on the back of volume growth.
ACC?s net profit stood at Rs 349.47 crore compared with Rs 470.98 crore in the corresponding period last year. Its net sales during the quarter dipped marginally to Rs 2,166.89 crore as compared with Rs 2,188.22 crore in Q2 of 2009. ACC Ltd and Ambuja follow calendar year as financial year.
?Overall sales and despatches were affected as a result of constraints in the uninterrupted and adequate supply of railway wagons and critical raw materials such as fly ash at several plants coupled with delay in stabilisation of recently commissioned cement projects,? ACC said in a statement.
ACC?s profit before tax during the quarter also dipped by 27.7% to Rs 493.19 crore along with a dip in sales volume by 2.8%.
However, the results for the quarter ended June 30, 2010, are not strictly comparable with the corresponding previous period, due to the company?s 100% investment in Encore Cement & Additives effective January 28, 2010, 100% investment in National Limestone Company effective April 20, 2009, and ACC?s 45% investment in Asian Concretes and Cements effective April 01, 2010, ACC said.
Ambuja Cement Ltd, on the other hand, posted a growth of 20.5% in its net profit to Rs 391 crore for the quarter ended June 30, 2010, as against Rs 325 crore in the same period last year. The company?s sales during the quarter stood at Rs 2,048 crore, up 10.8% against Rs 1,847 crore in the year-ago period. ?Net sales increased by 10.8%, to reach Rs 2,048 crore as a result of higher volumes,? Ambuja said in a statement.
Ambuja?s production for the quarter went up by 12.7% to 5.5 million tonne compared with 4.9 million tonne for the same quarter last year. Domestic sales volumes increased by 12.6%, from 4.6 million tonne to 5.2 million tonne.
