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ACC Logs Super Quarter

ACC has defied expectations to report a 23 per cent jump in net profit

The largest cement maker In India literally pulled a rabbit out of its hat when it announced that sales had been excellent and that the company had managed to log a 23 per cent rise in quarterly net profit.

In its consolidated report ACC said that its net profit after tax surged from Rs 324.31 crore for quarter ended March 31, 2008 to Rs 399.34 crore for the quarter ended March 31, 2009.

Operating profit for the quarter was Rs 576.62 crore, which was 42.6 per cent higher as compared to the same quarter of the previous year.

Its profit before tax was up 24.2 per cent for the quarter ended on March 31, 2009 which stood at Rs 576.62 crore compared to Rs 463.60 crore for the quarter ended on March 31, 2008.

The increase in sales volume has been achieved in the face of the global financial crisis that has caused almost all major economies of the world to slow down and a spiraling effect was expected on infrastructure-dependent industries like cement. Still, ACC sold 5.73 million tonnes of its product in the January to March quarter of 2009, on the other hand in the same period of last year (2008) the company registered a sales volume of 5.40 million tonnes.

Despite the slowdown the company expects the cement industry in India to keep growing in the future citing the fact that it has managed to record a growth of 9 per cent in the first three months of the year (January - March 2009).

According to the company, the better-than-expected results were due not just because of great sales but also because of to the tight control exercised on costs that positively impacted operations. While power and fuel costs went up by 12 per cent, overall manufacturing costs were constrained within 5 per cent only.