Tax gain propels ACC profit nearly 2-fold in Januray-March

NEW DELHI: Cement maker ACC's consolidated net profit for the January-March quarter nearly doubled to Rs 438 crore powered by higher "other income" and a one-time tax reversal.

The company, in which Swiss building material major Holcim has a majority stake, had reported Rs 152 crore net profit after taxes, minority interest and share of profit of associates in the corresponding quarter last year, it said in a statement.

"Net profit after tax was higher by Rs 287 crore for the reason that the company had recognised additional depreciation charge of Rs 335.38 crore in the first quarter of 2012 and due to write back of tax provision of Rs 140.83 crore during the first quarter of 2013," ACC said.

Total income of the company, however, dipped to Rs 2,956 crore during the reporting quarter from Rs 3,045 crore a year ago, due to subdued demand.

"Demand for cement in the first quarter of the year is usually expected to be robust. However, this year the industry does not witness the normal seasonal pattern on account of an overall slowdown in infrastructure and general construction segments. The slackening of demand also saw subdued realisations," ACC said.

However, despite the decline in income from operations, it has clocked a Rs 102 crore "other income" compared to Rs 65 crore a year earlier.

Tax expenses also came down to Rs 8 crore from Rs 59 crore a year earlier because of a one-time tax reversal.

"Tax expense for the quarter ended March 31, 2013 includes adjustment of credit of Rs 140.83 crore arising from reversal of tax provision related to earlier assessment year," ACC Ltd said.