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ACC profit plunges 77 percent on plant closure

Mumbai, Oct 21 (IANS) India’s second largest cement producer ACC Ltd Thursday announced a 77 percent decline in profit for the quarter ended Sep 30 on lower production due to plant shutdown.

The company’s net profit plunged to Rs.100.04 crore for the quarter ended Sep 30, 2010 from Rs.435.63 crore during the corresponding quarter last year, ACC, in which Switzerland’s Holcim controls 46 percent stake, said in a statement.

The company’s total income declined to Rs.1,718.08 crore in the third quarter of this calender year from Rs.2,020.24 crore in the same quarter 2009.

‘Performance during the quarter suffered a setback in terms of volume and profitability. The volume of clinker production and also cement came down due to shutdown at Wadi II for hook-up and commissioning for most period of the quarter,’ the company said.

Market conditions were weak in offtakes and prices due to severe monsoon and floods. The cost of production was also impacted due to hike in input costs for slag, fly ash and power, it added.

The company’s net profit for the first nine months of 2010 declined to Rs.864.10 crore from Rs.1,326.01 crore during the same period last year.

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