ACC suffers setback

Associated Cement Companies (ACC) has announced a loss of Rs. 19.79 crores for the quarter ended December 31, 1999, against a net profit of Rs. 34.02 crores in the corresponding period last year.

For the quarter, net sales were higher at Rs. 662.06 crores against Rs. 633.58 crores. Dividend and interest accounted for Rs. 68 lakhs (Rs. 1.34 crores). Other income including profits on sale of assets and provision relating to previous years written back and other non-recurring items amounted to Rs. 9.69 crores (Rs. 46.33 crores) while other income from others was Rs. 7.15 crores (Rs. 5.80 crores). Total expenditure for the period was Rs. 626.53 crores (Rs. 579.22 crores).

The profit before interest, depreciation and tax was sharply lower at Rs. 53.05 crores against Rs. 107.83 crores. During the period, production of cement was 23.96 lakh tonnes (23.18 lakh tonnes) and sale of cement (excluding trading) 24.38 lakh tonnes (23.05 lakh tonnes). The sale of traded cement was 1.96 lakh tonnes (1.99 lakh tonnes) and sales of cement including traded cement was 26.34 lakh tonnes (25.04 lakh tonnes).

Despite 5.8 per cent growth in sales volume during the quarter ended December 31, 1999 as compared to the corresponding period last year, there has been a decline in price realisation of around 4.7 per cent during the period, according to a company release.

The non-recurring items included under `other income' is mainly on account of refund received /receivable from Government on account of service tax arising out of favourable decision by the Supreme Court in a similar case.

During the quarter under review, Ambuja Cement Holdings has acquired an aggregate 123 lakh equity shares in the company from the present promoters, that is, certain Tata companies. With the above acquisition, the shareholding of Ambuja Cement Holdings in the company represents about 7.2 per cent of the equity share capital of the company.

Captive power plants of 25 MW each at Jamul and Kymore as also the project for augmentation of grinding capacity to 1.7 million tonnes annually at Kymore were commissioned on November 1, 1999.

For the nine month period ended December 31, 1999, the company recorded a loss of Rs. 9.98 crores against a profit of Rs. 55.12 crores in the corresponding period last year. Net sales were Rs. 1990.25 crores (Rs. 1827.20 crores). Dividend and interest was Rs. 4.23 crores (Rs. 13.58 crores).

Other income including profits on sale of assets and provision relating to previous year's written back and other non-recurring items was Rs. 23.3 crores (Rs. 54.66 crores) and others Rs. 20.74 crores (Rs. 19.18 crores). Total expenditure was Rs. 1842.40 crores (Rs. 1652.81 crores). The profit before interest, depreciation and tax was Rs. 196.12 crores (Rs. 261.81 crores).

For the period, production of cement was 72.41 lakh tonnes (65.07 lakh tonnes) and sales (excluding trading) 71.33 lakh tonnes (65.06 lakh tonnes). Sale of traded cement was 5.5 lakh tonnes (5.28 lakh tonnes) and sales of cement (including traded cement) 76.83 lakh tonnes (70.34 lakh tonnes).

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