Associated Cement Companies Limited (ACC) has posted a loss of Rs 95 m in the first quarter ended 30th June 2000. The company has suffered on account of a 5% drop in cement realisations. This has contributed to the decline in OPM.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
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In volume terms, cement sales increased 13%, faster than the revenue growth of 9%, indicating a sluggishness in realisations. The company has however stated that the effect of this has been marginalized by a decline in costs.
We have projected a loss of Rs 78.3 m and a topline growth of 11% for ACC during FY01. Although the company’s losses have already exceeded our estimates, it is anticipated that in coming quarters the company would be able to minimize these losses. This is already evident from the hardening of cement prices in recent weeks.
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