ACC Ltd sold 24.11 million t of cement in 2012, an increase on the 23.73 million t dispatched in 2011. The marginal y/y rise in sales volumes has been attributed to difficult market conditions in 2H12. According to the Indian cement manufacturer’s consolidated results for 2012, sales turnover reached Rs.11 113.56 crore, up from Rs.10 002.07 crore the previous year. Operating EBITDA rose to Rs.2196.64 crore from 2011’s Rs.1921.23 crore. However, profit after tax fell from Rs1300.8 crore to Rs.1059.28 crore. It should be noted that ACC has changed its method of depreciation related to captive power plants and if the original method had been employed then profit after tax would have been Rs.245.95 crore higher.
The firm expects an increase in cement demand in 2013, although input costs such as coal, energy, slag, gypsum and freight prices are likely to rise. An ongoing initiative focused on cost leadership and customer value enhancement helped to offset higher input prices in 2012.
Preliminary work has begun on a new clinker line and expanded grinding facilities at the company’s Jamul site and at two other sites in the east of India. The project, which is due to be completed in 2015, will increase ACC’s cement production capacity by 5 million t.
Holcim, which has a majority stake in ACC, is due to present its 2012 year end results on 27 February. ACC is also associated with India’s Ambuja Cements Ltd, which reported positive results for 2012.
Adapted from press release by Louise Fordham.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/13022013/cement_sales_acc_india_results_2012/