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ACC gains after good Q4 results

Capital Market / 09:32 , Feb 10, 2012

ACC rose 1.30% at Rs 1,407 at 9:30 IST on BSE after consolidated net profit rose 86.1% to Rs 463.20 crore on 26.5% increase in net sales to Rs 2647.41 crore in Q4 December 2011 over Q4 December 2010.

The result was announced after trading hours on Thursday, 9 February 2012.

Meanwhile, the BSE Sensex was up 38.01 points, or 0.21%, to 17,868.76.

On BSE, 14,000 shares were traded in the counter as against an average daily volume of 31,271 shares in the past one quarter.

The stock hit a high of Rs 1,421.95, which is also a record high for the counter. The stock hit a low of Rs 1,400 so far during the day. The stock had hit a 52-week low of Rs 917 on 20 June 2011.

The stock had outperformed the market over the past one month until 9 February 2012, gaining 26.27% compared with the Sensex's 12.75% rise. The scrip had also outperformed the market in past one quarter, rising 15.45% as against 2.70% rise in the Sensex.

The large-cap cement maker has an equity capital of Rs 187.74 crore. Face value per share is Rs 10.

On a consolidated basis, net profit of ACC rose 20.7% to Rs 1300.80 crore on 21.2% increase in net sales to Rs 10012.33 crore in the year ended December 2011 over the year ended December 2010.

ACC said its cement sales volume rose 11.46% to 23.73 million tonnes in the year ended December 2011 over the year ended December 2010. This was made possible by the stabilisation of the recently added capacities at Chanda and Wadi, coupled with enhanced availability from other plants.

ACC said its profitability was affected by steep escalations in the cost of major inputs. Coal prices for different grades increased by about 30%, while the cost of gypsum and flyash increased significantly. Higher fuel prices also led to increased cost of transportation.

In its outlook, ACC said that while economic growth during the year was not robust, it is seeing some positive signs in the last few months. In the near term, the firm expects that economic development will accelerate as India plans to invest about $1 trillion in infrastructure in the Twelfth Five-Year Plan period. This makes the company optimistic about healthy growth in demand for cement. With regards to raw materials, coal pricing is volatile and the company anticipates a rise in the costs of other critical inputs.

 



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