Leading cement manufacturer ACC reported an 18 per cent
rise in its net profit for the fourth quarter of 2014 at Rs. 326 crore.
This was largely aided by a tax reversal of Rs. 184.35 crore (Rs. 35.85
crore in the year-ago period).
The company which
follows the calendar year, reported a 3 per cent rise in net sales for
the quarter at Rs. 2,762 crore. The company profit from operations for
the period declined to Rs. 110.38 crore (Rs. 206.72 crore) and the
operating margin declined 420 basis points to 9.2 per cent. These were
impacted by high raw material and freight costs.
For
the year 2014, ACC reported a 6 per cent growth in net profit at Rs.
1,161.82 crore while net sales grew 5.4 per cent at Rs. 11,480.31 crore.
The Board of directors has recommended a final dividend of Rs. 19 per
share, which with the earlier interim dividend of Rs. 15 takes total
dividend for the year to Rs. 34.
A statement from the
company said cement selling price improved 4 per cent in 2014 and sales
volume was marginally higher at 24.2 million tonne (23.9 million
tonne). ACC’s limestone mining operations at Chaibasa and Bargarh plants
were temporarily suspended during the fourth quarter following a
Supreme Court order. “As per the New Mining Ordinance of January 2015,
we expect these operations to commence shortly,” the company statement
said.
“Based on the present condition, we see a
modest but steady revival for the Indian economy in 2015 leading to some
improving trends in all sectors of the economy with a positive impact
on demand for cement,” the statement said.
On the Bombay Stock Exchange, ACC reacted by 1.02 per cent to close trade at Rs. 1,510.6 on Tuesday.
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