ACC’s net profit down by 46%

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India:Associated Cement Companies (ACC) has posted a 46% year-on-year decline in its profit in the quarter ending 31 December 2012. It made a quarterly profit of US$47.1m, which was lower than in the same quarter of 2011 due to higher finance and raw material costs.

ACC's sales rose by around 2% year-on-year to US$505.6m as demand improved towards the end of the quarter. The company's earnings before interest, tax, deprecitaion and amortisation (EBITDA) were down to US$59.6m compared to US$83.1m in 2011.

Cost pressures are likely to remain high for ACC due to higher railway freight rates and interest costs. Going ahead, margins may improve on the back of price hike announced recently by cement companies.

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