There has been a steep fall in the net profit of Associated Cement Companies (ACC) by 82.52 per cent at Rs 13.44 crore for the year ended March 1998 compared with Rs 76.92 crore in the previous year. The company board has declared a 15 per cent dividend for the same period against 30 per cent last year.
The profits is mainly on account of increase in other income which rose to Rs 66.13 crore from Rs 38.81 crore in 1996-97. The company has also accrued incomes worth Rs 14.86 crore by the sale of slag granulation plant and surplus asset at Bupendra, Lakheri and Kymore plants and also provision of Rs 19.37 crore for Himachal Pradesh barrier tax which no longer requires to be written back.
The company has been affected by depressed cement prices and increase in input costs. In most regions, cement prices were lower by 15-20 per cent in the year under review thereby forcing the company to sell its product at a lower price.
During 1997-98, the company's interest component has gone up marginally to Rs 119.14 crore compared with Rs 118.29 crore in the previous year, while depreciation was to the extent of Rs 85.51 crore for the year. The tax outgo stood at Rs 2 crore.
The gross sales were also lower at Rs 2,400.01 crore against Rs 2,469.22 crore, representing a decline of two per cent.
ACC has been able to maintain an average market share of 10 per cent. During 199-97, the company's market share in the north-east was close to 15 per cent, west nine per cent, while in the south it was to the extent of 10 per cent.
