ACC has posted a 79% decline in its consolidated net profit at Rs 86.31 crore for the quarter ended September 30, 2010 against Rs 415.51 crore in the same quarter last year, on the back of lower production because of its plant shutdown. During the same period, the company posted a 15.3% decline in the consolidated net sales at Rs 1,759.18 crore against Rs 2,077.38 crore in the year-ago period.
The sales volume of cement for the quarter have also seen a decline from 5.01 million tonne to 4.83 million tonne. According to ACC, in which Switzerland’s Holcim controls 46% stake, the volume of clinker production and also cement came down due to slow down at Wadi II for hook up and commissioning for most of the quarter. Moreover, the cost of production was also impacted due to the hike in input costs for slag, fly ash and power.
However, the September quarter results are not comparable with the corresponding previous period because of the investments made by the company during last one year. These include a 100% investment in Encore Cement & Additives and National Limestone Company and a 45% investment in Asian Concretes and Cements.
Meanwhile, Ambuja Cement Ltd has recorded a 52.5% decline in the net profit at Rs 152 crore as against Rs 318 crore in the same quarter last year. The net sales saw a decline of a marginal 2.9% at Rs 1,564 crore against Rs 1,611 crore in the year-ago period. However, the overall sales volume has seen a jump of about 6.1% at 4.35 million tonne as compared to 4.10 million tonne last year in the September quarter.
Against a subdued construction activity during the monsoon, the company has posted a fall in the Ebitda of 34.6% year-on-year, at Rs 302 crore from Rs 462 crore last year. According to the company, the overall cement demand growth remained during the quarter, at 3.4% year-on-year, mainly because of strong monsoon and delayed spending on infrastructure and housing projects.