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Higher depreciation due to new projects: ACC

Our Bureau

MUMBAI, April 30

ASSOCIATED Cement Companies Ltd (ACC), which has registered a profit after tax of Rs 47.48 crore in 2000-2001 against a loss of Rs 58.85 crore in the previous fiscal, has said in a statement that depreciation during the year was higher on account of com missioning of Chanda, Madukkarai and various other projects and because of the full year impact of captive power plants of 25 MW each at Jamul and Kymore, commissioned in November 1999.

The higher interest charge of the fiscal was also ascribed to these projects.

``In view of the closure of the synthetic ferric oxide plant due to adverse market conditions and unremunerative price realisation, an amount of Rs 30 crore has been charged to profit and loss account towards write-down of assets,'' the statement said. A n additional provision for contingency of Rs 13 crore (net) was also made during the year.

While clinker production at 8.21 million tonnes in 2000-2001 was ``marginally higher'', cement production for the year was 10.21 million tonnes (10.04 million tonnes).

The turnover of the refractory business improved to Rs 194 crore (Rs 187 crore) and its sales volume, including captive requirement, was 1.19 lakh tonnes (1.15 lakh tonnes). ACC's ready-mix concrete business registered a higher turnover of Rs 91 crore (R s 76 crore).

The company's new project at Wadi, with the country's largest kiln, has been commissioned for trial production and is slated to go on stream shortly. With its commissioning, ACC's capacity at 15.3 million tonnes will be the highest in the industry.

A 15 MW power plant, similar to the one at Chanda, is planned for ACC's Madukkarai works.

On business outlook for the new fiscal, ACC said: ``The slowing down of the growth rate coupled with the additional capacities which came on stream in 2000-01 and that which is in the pipeline for 2001-02, is likely to result in the over-supply situatio n continuing in the industry for some more time. However, if the country has a normal monsoon and the infrastructure projects do take off, it is not unreasonable to expect a revival in demand from the second half of the current year.''