ACC's PAT for Q2 is Rs 255.08cr

ACC announces 2nd Quarter (April -June 2008) Consolidated Results

Sales volume at 5.29 million tonnes of cement during the second quarter (April-June 2008) remained flat as compared to last year on account of lower availability of cement from two plants and constraints in despatches during the agitation in Rajasthan. Total turnover during the quarter was Rs. 1920.11 crore as compared to Rs.1891.28 crore during the corresponding period of the previous year.

Total consolidated turnover in the second quarter (April-June 2008) was Rs. 1920.11 crore, which was 1.52% higher as compared to the corresponding period of the previous year.

Profit before Tax during the second quarter of the current year was Rs.373.00 crore, as compared to Rs. 508.22 crore in the previous year. Profit after Tax for the quarter was Rs. 255.08 crore as against Rs. 349.02 crore in the previous year.

This quarter year on year Government taxes and duties were up 15% while cement prices net of Government taxes and duties were up only 4%. Fuel costs alone rose by a staggering 41%. The quarter saw an unprecedented increase of 24% year on year in the cost of principal inputs including coal, power, fly ash and gypsum.

II Interim Dividend

The Board of Directors of the Company decided to recommend payment of interim dividend to the shareholders for the financial year 2008 at the rate of 100%. The Record date for determining the shareholders entitled to the Interim Dividend will be August 1, 2008 and the interim dividend will be paid on and from August 12, 2008.

III Ongoing Modernisation/Expansion projects

The major projects being implemented by the company include expansion of capacity at Bargarh, New Wadi and Chanda. These projects together will add 7.2 million tonnes of capacity raising the company’s installed capacity to 30.4 million tonnes by 2010.

IV Community Development

The comprehensive community sustainable development programme launched at Wadi in partnership with Development Alternatives is progressing satisfactorily. We have recently also entered into agreements with leading development agencies to undertake similar sustainable community development projects for the benefit of the weaker sections of society living around our Plants at Chaibasa in Jharkhand and Chanda in Maharashtra. These programmes will focus on capacity building, mobilization of youth volunteers, women’s empowerment and promotion of livelihoods.

V Knowledge Development:

The ACC Cement Technology Institute was opened in Jamul, Chhattisgarh. This institute offers an in-house programme in cement technology which comprises a 12-month course with a mix of classroom and practical learning. The first batch has 46 candidates who are young diploma engineers from various engineering colleges in the country.

VI Sustainable Development

Waste management: Our Waste management team successfully conducted coprocessing of used and non-recyclable polythene and plastic waste at our Kymore plant with active support from Madhya Pradesh Pollution Control Board. The Board granted permission to ACC to co-process plastics in its kilns for the first time in India The resultant kiln emissions were assessed against global standards and found to be acceptable. The project targeted use of plastic and polythene waste of less than 20 micron size. This non bio-degradable waste material is not usually amenable for recycling and does not fetch any resale price; it is hence not picked up by garbage collectors and poses a disposal problem in many cities and towns of the state. The project offers opportunities for livelihood generation from the collection of such waste. This is an important milestone in waste management.

Wind Energy: The Company is currently undertaking a project to set up a wind energy farm at Ratankabas near Jodhpur in the state of Rajasthan at a cost of Rs. 55 crores. This wind farm comprising 5 wind turbines of capacity 1.5 MW each is being established as part of an ongoing effort to promote environment–friendly renewable energy sources.

Sustainable Development Report: We released our first corporate Sustainable Development Report on World Environment Day, June 5, 2008. This Report describes the economic, environmental and social impact of the company’s performance in 2007 and explains management approach and strategy with performance indicators and case studies highlighting our achievements and stakeholder engagements. The Report is compiled using the G3 guidelines of the Global Reporting Initiative. Through the Report, the company has reaffirmed its belief in the Triple Bottom Line framework for assessing an organisation’s performance.

VII Outlook

Despite apprehensions about the impact of inflation and a slowdown in industrial production and overall economic scenario, the outlook for the cement sector remains positive in respect of growth in demand in the foreseeable future. Infrastructure and housing are still moving apace. However what is of concern to the industry are staggering rise in input costs and pressures to cap selling prices at the same time. Unless the industry is able to recover cost increases, through suitable adjustments in selling prices through rational economic considerations, the cement industry will be under pressure. 

Sourced from: ACC Limited