Cement major Associated Cement Companies (ACC) witnessed a dip in its net profit by a very marginal 0.52 per cent at Rs 21.21 crore for the first six months ended September 1998 from Rs 21.10 crore for same period in the previous year. The sales on the other hand were up by 1.56 per cent at Rs 1,191.15 crore compared to Rs 1172.87 crore in April-September 1997.
The present quarter results had an altogether different story to tell. The net profit zoomed by 238.34 per cent to Rs 12.62 crore from Rs 3.73 crore in the same period last year. The sales however dipped by a minuscule 0.25 per cent at Rs 575.22 crore from Rs 576.68 crore.
This change in profit occurred primarily due to a cut in expenditure by a small 3.59 per cent to Rs 522.28 crore from Rs 541.71 crore. Also in the previous year's quarter the company had to make an excess provision towards excise duty relating to the prior period of about Rs 8.18 crore.
Although the margins have improved marginally to 12.92 per cent from 11.15 per cent in the first half of last year, the reduction in profits in the first this year could be on account of a 36.16% increase in interest costs to Rs 79.34 crore from 58.27 crore.