Associated Cement Companies (ACC) has reported a 2% drop in operating margins during the year ended 31st March 2000. The company has suffered from a faster increase in expenditure.
Other factors that contributed to the company’s disappointing performance include a 58% decline in other income. These factors resulted in the company posting a loss for the current year.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Earnings per share
The company’s cement business has recorded a growth of 7% in volume terms. That the topline has not grown by a similar amount reflects that cement realisations continued to be under pressure during the year.
The company has stated that it has initiated a restructuring exercise which will see it divesting its non cement businesses. The move should augur well for the company which has interests in, among others, a tyre company and a company manufacturing wind shields for cars. The disinvestment would also raise funds, which could be utilised for its current capital expenditure plans, or for paring down debt levels.
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