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ENS Economic Bureau
MUMBAI, JAN 27: Associated Cement Companies (ACC) has managed to avert a loss in the third quarter of fiscal 1999 thanks to a hefty ``other income''. The Rs 52 crore ``other income'' has enabled ACC to declare a net profit for the third quarter of the current fiscal.
Buoyed by profit from sale of assets and investments, the cement major has instead shown a net profit of Rs 34.02 crore, up from a modest Rs 8.10 crore profit in the same quarter of the last year. For the other income, the company would have made a loss of Rs 18 crore for the quarter.
With the sale of captive power units to Tata Electric for Rs 90 crore concluded this month, ACC is assured of a safe `other income' cushion for the fourth quarter as well.
Net sales in the third quarter stood at Rs 633.58 crore, up from Rs 606.04 crore in the corresponding quarter last year, while other income zoomed from Rs 19.37 crore to Rs 46.33 crore.
"The non-recurring items upto the third quarter ended December 31, 1998 includes write-back of provisionmade in earlier years relating to tax incentives in respect of Wadi power plant, write-back of concessional central sales tax liability for earlier years pertaining to Karnataka sales no longer required, accrual of incentives pertaining to previous years relating to Kymore one million tonne plant and profit on sale of investments," says a release signed by company managing director TMM Nambiar.
Profit before tax shot up to Rs 38 crore from Rs 9.05 crore in the third quarter last year, net profit zoomed from Rs 8.10 crore to Rs 34.02 crore during the period.
During the first nine months of the current financial year, ACC posted a net profit of Rs 55.12 crore as against Rs 29.31 crore previously, a 90 per cent rise as compared to the corresponding period of last year. Net sales increased to Rs 1,824.73 crore from Rs 1,778.91 crore in April-December last year, while other income increased from Rs 46.3 crore to Rs 76.2 crore.
Sale of cement in the third quarter stood at 2.30 million tonnes, as against 2.28million tonnes in the same period last year, while sale of traded cement increased from 1.08 lakh tonnes to 1.99 lakh tonnes during the period. Sale of cement during April-December this year increased marginally to 6.50 million tonnes from 6.46 million tonnes last year, while sale of traded cement increased from 4.49 lakh tonne to 5.28 lakh tonnes.
Profit (before interest, depreciation and tax) increased to Rs 107.83 crore from Rs 61.36 crore, while gross profit (after interest but before depreciation and tax) more than doubled to Rs 64.18 crore from Rs 30 crore in the third quarter last year.
Interest charges shot up to Rs 43.65 crore in the third quarter, up from Rs 31.36 crore, while the provision for depreciation increased from Rs 20.95 crore to Rs 26.17 crore.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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