Cement maker ACC shares fell over 2 per cent on Thursday after the company reported a sharp decline of 69 per cent in consolidated net profit at Rs 102.39 crore for the quarter ended December 31, 2015 despite increase in total income. The company, which follows January-December as fiscal year, had posted a net profit (after taxes, minority interest and share of profit of associates) of Rs 326.22 crore during corresponding quarter of 2014.
At 10.48 am, ACC shares were trading 1.60 per cent down at Rs 1,248.70. The scrip opened at Rs 1,251 and has touched a high and low of Rs 1,256.75 and Rs 1,234.25 respectively, in trade so far. Later, the share price of the company settled 2.74 per cent down at Rs 1234.30.
According to Reuters, HSBC that has retained the “reduce” rating on the stocks has also cut its target price to Rs 1,139 from Rs 1,165, saying cement industry is “plagued by overcapacity and sluggish demand conditions”. It further added ACC has been the worst performer among cement companies HSBC covers due to disappointing volume growth. Deutsche Bank has retained ‘Hold’ rating on the stocks and has cut the target price to Rs 1,315 from Rs 1,375 citing company’s strong balance sheet”.
In the year-ago period, the company had tax benefits and other income, as per the BSE filing by the company.
Total consolidated income from operations rose to Rs 2,911.92 crore in the October-December quarter from Rs 2,837.03 crore in the same period a year ago.
Total expenses were almost flat at Rs 2,790.76 crore over Rs 2,726.65 crore in the year-ago quarter.