ACC profits drop following change in depreciation methods

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ACC profits drop following change in depreciation methods
ACC: Quotes, News
BSE 1777.00BSE Quote33.05 (1.86%)
NSE 1780.10NSE Quote31.1 (1.75%)
Cement major ACC has reported a a profit after tax of Rs152 crore, for the first quarter. as compared to Rs 350 crore reported in the corresponding period of last year. The sharp decline in profits, is attributed to a change in the accounting policy.

The Company has recognized an additional depreciation charge of Rs 341 crore, which had led to a drop in PAT. Turnover at the company rose to Rs 3015 crore from Rs 2541 crore in the corresponding period of the previous year.

The company’s results can be attributed ti better volumes during the quarter. Manufacturing costs and realisations were affected by a steep escalation in the cost of inputs such as coal, fly ash and gypsum.

The cost of transportation also rose significantly as a result of the hike in rail freight and increase in diesel prices, the company said in the statement.

The Board of Directors of the Company have recommended a final dividend of Rs 17 per share, taking the total dividend to Rs 28 per share, following an earlier interim dividend of Rs 11.

Shares of the company were trading low at Rs 1,266 lower 2.40% on BSE at 2.50 pm IST.

Read more about: acc, pat, shares
Story first published: Thursday, April 19, 2012, 14:50 [IST]
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