New Delhi: Cement maker ACC Thursday reported a 18.6 percent dip in consolidated net profit for the year 2012 at Rs 1,059 crore as it changed the method of calculating depreciation.
The company, in which swiss major Holcim has the majority stake, had clocked Rs 1,301 crore net profit in 2011, it said in a statement.
“Had the company continued to use the earlier method of depreciation, the profit before tax and the profit after tax for the year ended December 31, 2012 would have been higher by Rs 364.08 crore and Rs 245.95 crore respectively," it said.
Higher fuel and transportation costs also impacted the company's bottomline.
Turnover of the company rose to Rs 11,131 crore from Rs 10,002 crore. ACC sold 24.11 million tonnes cement during 2012 compared to 23.73 million tonnes in 2011, representing only a marginal growth.
The company said the marginal growth in sales was because of the difficult market conditions in the latter part of the year.
"We expect demand for cement to improve in the coming year. On the costs front, we anticipate that the prices of our major inputs such as coal, energy, slag, gypsum and freight costs may be under pressure," ACC said.
ACC said preliminary work on the capacity expansions has commenced and orders of major plant and equipment has been placed. Theese projects are scheduled for completion in phases and would enhance its capacity by five million tonnes per annum (mtpa) by 2015. It has around 30 mtpa capacity now.