ACC posts 9.7% rise in Q4 profit

Cement maker ACC Ltd's consolidated net profit for October-December quarter rose by 9.7 per cent to Rs 275.71 crore.

The consolidated profit in 2013 remained almost flat at 1,094.67 crore as a result of lower realisations amid sluggishness in the domestic market, ACC said in a release.

The second largest cement maker in the country, where an over-capacity situation has been prevailing for long time now, does not see any major improvement in the domestic market in the near-term.

ACC, controlled by Swiss building material major Holcim, had clocked Rs 251.24 crore net profit in the same period last year. It follows January-December accounting year.

The total income during the period under review rose to Rs 2,792.52 crore from Rs 2,768.11 crore a year ago. Expenses, primarily due to higher fuel and freight costs, also went up to Rs 2,585.80 crore from Rs 2,518.69 crore a year earlier.

Consolidated net profit of the firm slightly rose to Rs 1,094.67 crore in 2013 from Rs 1,059.28 crore a year earlier, but total income marginally fell to Rs 11,169.42 crore in 2013 from Rs 11,358.19 crore in 2012.

"The economic environment in the country was sluggish, thus impacting the demand for cement and concrete. As a result the company's cement volumes remained almost flat," ACC said.

"Based on current demand indications, we do not foresee any significant improvement in the cement market in the near-term," ACC said, adding, however, its customer excellence efforts would continue to enhance realisations.

ACC's board has recommended total dividend of Rs 30 a share for 2013.