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Construction : Web Exclusive | May 2013 | Source : Construction Update

Net revenue of ACC, Ambuja declines

Net revenue of cement major ACC contracted about 3 percent from a year ago to Rs 2,911.1 crore, while that of Ambuja fell 3.5 percent to Rs 2,544.8 crore during Jan-Mar 2012-13.

The decline in net revenue is attributed to weak cement prices amid tepid demand. Moreover, lower raw material costs did not offer any respite as expenses on other fronts spiralled.

While the operating profit of ACC fell 25.8 percent to Rs 446.6 crore, that of Ambuja slid 31.2 percent to Rs 511.9 crore.

Both the cement firms witnessed 2-3 percent rise in the transport and freight costs, which comprise nearly one-fifth of total expenses.

The companies also had to fork out more towards power and fuel costs compared to the year-ago period. Both firms also took a beating with a surge in other expenses, partly owing to higher royalty fees paid to their parent Holcim.

The operating profit contraction trickled downwards to profits. While net profit of both firms plunged in line with their operating profits, ACC’s reported number was higher as it included tax credit in earlier years.

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