ACC Posts Muted Performance In Q4FY13

The total income of company remained flat on yearly basis, during Q4FY13 at Rs 2792.5 crore. Its major business cement manufacturing drove an income of Rs 2652 crore against Rs 2657.5 crore in Q4FY12. Whereas, the only growth showed is in its ready mix concrete business, which grew by 27% to Rs 174 crore. On yearly basis, the company's cement sales volume degrew by 0.75% to 23.93 million tonnes for December quarter FY13.

However, the bottomline of company improved by 10% came in at Rs 273 crore, only because of the adjustments of Rs 75.9 crore made in the December quarter FY13. Prior the tax expenses adjustment, the profit of company dropped by 17% reduced to Rs 237 crore.

During the last quarter in FY13, ACC has made an effort to offset the pressure of higher input costs by lowered its operating expenses, which on yearly basis has increased by just 2% (Rs 2430.8 crore). This rise in operating expenses is due to the increase in power, fuel, freight and other expenses during Q4FY13.

Further on expansion front, the company's Waste Heat Recovery Boiler plant in Gagal cement (Himachal Pradesh), got commissioned, produced an output of about 7 MW during Q4FY13. In addition, it reported about its under development Jamul project in Chhattisgarh, which will be completed by mid FY15. Also, the company commenced the development of its Sindri site in Jharkhand during the quarter under consideration.

The company also announced, final dividend of Rs 19 per share along with the result announcement.

Although, the reason given by the company for the flat cement volume growth is the weak demand in the entire cement and concrete industry due to the subdued development in infrastructure sector, ACC expects the demand to remain lower in the near term.