RNS Number:5036B
Associated Cement Companies Ld(The)
2 August 2004

To: RNS
Dated: July 22, 2004

   Pursuant to the provisions of the Listing Agreement, we are furnishing in the
enclosed statement the Unaudited Financial Results (provisional) in respect of
the Company's working for the first quarter ended 30th June 2004 which have been
reviewed by the Auditors. The text of the said statement was approved by the
Board of Directors of the Company at its Meeting held today and the same was
taken on record.   In terms of the Listing Agreement, the said statement will be
published in "The Times of India" and "Maharashtra Times".

     Thanking you,

From: The Associated Cement Companies Ltd.,
 


                      THE ASSOCIATED CEMENT COMPANIES LIMITED
                         Registered Office : Cement House,
                   121, Maharshi Karve Road, Mumbai - 400 020

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED JUNE 30,2004

* TOTAL INCOME FOR Q-1 UP BY 16%.
* PROFIT AFTER TAX FOR Q-1 Rs. 81 CRORE UP BY 84%. 
* COST FOCUS HELPS CONTAIN IMPACT OF INFLATION.

I. The audit committee and the Board of Directors of the Company at its meeting
held on July 22, 2004 have reviewed and approved the unaudited accounts for the
quarter ended June 30, 2004 which have been subjected to a limited review by the
auditors and the text of this statement was also taken on record.

II. SUMMARISED FINANCIAL RESULTS

                                                         QUARTER               QUARTER             YEAR
                                                          ENDED                 ENDED             ENDED
                                                      JUNE 30,2004          JUNE 30,2003      MARCH 31,2004
                                                         REVIEWED              REVIEWED          AUDITED
                                                       Lakh Tonnes           Lakh Tonnes       Lakh Tonnes       
   
  SALE OF CEMENT                                 
  OWN                                                        37.43                 37.00            146.66
  SUBSIDIARIES                                                1.29                  1.23              4.84 
  OTHER TRADED CEMENT                                         0.13                  0.29              1.01 
  TOTAL SALES                                                38.85                 38.52            152.51 
          
                                                         Rs. Crore             Rs. Crore         Rs. Crore 
1  NET SALES / INCOME FROM OPERATIONS                      1100.57                962.31           3888.30 
   LESS: EXCISE DUTY RECOVERED                              152.64                152.52            603.83  
   NET SALES                                                947.93                809.79           3284.47 
          
2  OTHER INCOME           
   i) Dividend                                                3.13                  3.71             37.60 
   ii) Gain on foreign exchange                               0.27                  8.39             42.48 
   iii) Other items                                          11.14                  6.82             58.48 
   iv) Other non-recurring items                                 -                     -             11.97  
           
   TOTAL (1+2)                                              962.47                828.71           3435.00  
          
3  TOTAL EXPENDITURE           
               
   a)(Increase) /Decrease in stock in trade                (46.47)                (1.88)              7.98 
   b) Consumption of Raw materials                          146.94                112.58            486.13 
   c) Staff cost                                             52.21                 47.56            203.22 
   d) Power & Fuel                                          201.51                186.96            744.09 
   e) Outward Freight charges on Cement etc.                127.18                113.41            459.23 
   f) Excise Duties (Net)                                     7.07                  5.53             11.21 
   g) Purchase of Cement & Other Products                    54.70                 42.87            184.28 
   h) Other Expenditure                                     242.68                180.52            804.94 
   Total Expenditure                                        785.82                687.55           2901.08 
            
4  PROFIT BEFORE INTEREST,          
   DEPRECIATION AND TAX (1+2-3)                             176.65                141.16            533.92 
               
5  INTEREST ( NET )                                          20.88                 24.96             92.91 
               
6  DEPRECIATION                                              43.91                 43.56            176.85 
               
7  PROFIT/(LOSS) BEFORE TAX & EXCEPTIONAL ITEMS (4-5-6)     111.86                 72.64            264.16 
               
8  EXCEPTIONAL ITEMS           
   a) WRITE DOWN OF VALUE OF ASSETS                              -                (8.00)            (8.00) 
   b) PROVISION FOR CONTINGENCIES                                -                (4.50)            (2.30) 
               
9  PROFIT/(LOSS) AFTER EXCEPTIONAL ITEMS           
   & BEFORE TAX ( 7-8)                                      111.86                 60.14            253.86 
               
10 PROVISION FOR CURRENT TAX                                  8.52                  4.72             16.09 
          
11 PROVISION FOR DEFERRED TAX                                22.11                 11.28             37.53 
                                                                                                     
12 PROFIT/(LOSS) AFTER PROVISION FOR TAXATION & 
   EXCEPTIONAL ITEMS (9-10-11)                               81.23                 44.14            200.24 
               
13 Paid-up Equity Share Capital                             178.42                171.25            177.94 
   (Face value per share Rs.10)
           
14 Reserves excluding Revaluation Reserves                                                         1175.79 
           
15 Basic Earnings per Share                           Rs.     4.56                  2.58             11.68 
   Fully diluted Earnings per Share                   Rs.     4.39                  2.58             11.61 
               
16 Aggregate of Non-Promoter Shareholding           
   Number of Shares                                      178188849             170960629         177195530 
   Percentage of shareholding                                 100%                  100%              100%

 

Information on investor complaints pursuant to clause 41 of the listing 
agreement for the quarter ended June 30, 2004

                   Particulars                             Complaints          Complaints         Complaints    Closing 
                                                         pending at the      received during    disposed of and  Balance
                                                            beginning       the quarter ended   resolved at the
                                                        of the quarter       June 30, 2004    end of the quarter  
 
                                                                 -                    36                35           1 
Notes:  1) EPS for the quarters are not annualised.
        2) Previous period figures have been regrouped wherever necessary.



III.                            CONSOLIDATED RESULTS

                                                        CONSOLIDATED          CONSOLIDATED          CONSOLIDATED
                                                       QUARTER ENDED         QUARTER ENDED            YEAR ENDED
                                                        JUNE 30,2004          JUNE 30,2003         March 31,2004
                                                           REVIEWED               REVIEWED               AUDITED        
                                                          Rs. Crore              Rs. Crore             Rs. Crore 

1  NET SALES / INCOME FROM OPERATIONS                       1225.67                1031.46               4147.69 
   LESS: EXCISE DUTY RECOVERED                               152.83                 145.81                587.25 
   NET SALES                                                1072.84                 885.65               3560.44 
          
2  OTHER INCOME           
   i) Dividend                                                    -                      -                  0.14 
   ii) Gain on foreign exchange                                0.27                   8.39                 42.91 
   iii) Other items                                           11.46                   6.62                 60.15 
   iv) Other non-recurring items                                  -                   0.04                 63.74 
           
3 Share of earnings of Associates                            (0.12)                 (0.47)                (0.01) 
   TOTAL (1+2+3)                                            1084.45                 900.23               3727.37 
          
4 TOTAL EXPENDITURE           
               
   a)(Increase)/Decrease in stock in trade                  (36.69)                   7.83                14.24 
   b) Consumption of Raw materials                           142.61                 105.43               575.90 
   c) Staff cost                                              62.10                  54.28               234.88 
   d) Power & Fuel                                           218.45                 192.41               778.74 
   e) Outward Freight charges on Cement etc.                 143.26                 123.84               497.77 
   f) Excise Duties (Net)                                     14.06                  12.03                52.65 
   g) Purchase of Cement & Other Products                     58.36                  49.76                59.16 
   h) Other Expenditure                                      280.64                 201.01               908.48 
   Total Expenditure                                         882.79                 746.59              3121.82 
            
5 PROFIT BEFORE INTEREST,          
   DEPRECIATION AND TAX (1+2+3-4)                            201.66                 153.64               605.55 
               
6 INTEREST ( NET )                                            21.95                  26.75                98.91 
               
7 DEPRECIATION                                                53.45                  47.72               198.95 
          
8 MINORITY INTEREST                                            2.07                   1.60                13.84 
               
9 PROFIT/(LOSS) AFTER MINORITY INTEREST & 
  BEFORE TAX & EXCEPTIONAL ITEMS (5-6-7-8)                   124.19                  77.57               293.85 
               
10 EXCEPTIONAL ITEMS           
   a) WRITE DOWN OF VALUE OF ASSETS                               -                 (8.00)               (8.00) 
   b) PROVISION FOR CONTINGENCIES                                 -                 (1.44)                 2.01 
               
11 PROFIT/(LOSS) AFTER EXCEPTIONAL ITEMS           
   & BEFORE TAX (9-10)                                       124.19                  68.13               287.86 
               
12 PROVISION FOR CURRENT TAX                                  13.52                   7.66                27.59 
          
13 PROVISION FOR DEFERRED TAX                                 23.89                  11.80                40.14 
               
14 PROFIT/(LOSS) AFTER PROVISION FOR TAXATION 
   & EXCEPTIONAL ITEMS (11-12-13)                             86.78                  48.67               220.13 
               
15 Paid-up Equity Share Capital                              178.42                 171.25               177.94 
   (Face value per share Rs. 10)
           
16 Reserves excluding Revaluation Reserves                                                              1235.72 
           
17 Basic Earnings per Share                    Rs.             4.88                   2.85                12.84 
   Diluted Earnings per Share                  Rs.             4.69                   2.85                12.76 
               
18 Aggregate of Non-Promoter Shareholding           
   Number of Shares                                       178188849              170960629            177195530 
   Percentage of shareholding                                  100%                   100%                 100% 

Notes:  1) The consolidated Financial Results are prepared in accordance with 
           Accounting Standard (AS) 21 on Consolidated Financial Statements and 
           (AS) 23 on Accounting for Investments in Associates in Consolidated 
           Financial Statements issued by the Institute of Chartered Accountants 
           of India.

        2) Current quarter consolidated figures are not comparable with the 
           previous quarter consolidated figures to the extent that Bargarh 
           Cement Limited (Subsidiary Company) was acquired on December 23, 2003 
           and which is consolidated as per Accounting Standard (AS) 21.

        3) Previous period figures have been regrouped wherever necessary.




IV.                Segment wise Revenue, Results and Capital Employed

   Particulars    
                                        Quarter       Quarter           Year   Consolidated   Consolidated  Consolidated
                                          ended         ended          ended  quarter ended quarter ended     year ended
                                   June 30,2004  June 30,2003  March 31,2004   June 30,2004  June 30,2003  March 31,2004
                                       Reviewed      Reviewed        Audited       Reviewed      Reviewed        Audited
                                       Rs.Crore      Rs.Crore       Rs.Crore       Rs.Crore      Rs.Crore       Rs.Crore
1  Segment Revenue ( net 
   sale/ income from each 
   segment )              

   a. Cement                             844.62        734.32        2935.58         882.70       734.53         2996.35
   b. Refractory                          49.11         38.10         178.27          49.11        38.10          178.27
   c. Ready Mix Concrete                  43.13         28.78         128.86          43.13        28.78          128.86
   d. Others                              26.50         19.80          95.27         108.15        91.38          332.42
                                
   Total                                 963.36        821.00        3337.98        1083.09       892.79         3635.90
                     
Less: Inter segment revenue               15.91         11.77          55.65          10.73         7.70           77.60
                  
   Net sales / income from 
   operations                            947.45        809.23        3282.33        1072.36       885.09         3558.30
                  
   Income from non-segmental operations    0.48          0.56           2.14           0.48         0.56            2.14
                     
   Total                                 947.93        809.79        3284.47        1072.84       885.65         3560.44
                 
2  Segment Results 
   (Profit + /(Loss)(-) before 
   tax and interest)  
            
   a. Cement                             151.04         86.69         270.98         161.01        90.31          287.94
   b. Refractory                           7.68          4.44          23.53           7.68         4.44           23.53
   c. Ready Mix Concrete                   3.86          2.73          10.96           3.86         2.73           10.96
   d. Others                               3.93          2.29          18.41          15.87        11.45           40.91
                  
   Total                                 166.51         96.15         323.88         188.42       108.93          363.34
   Less: i Interest                       20.88         24.96          92.91          21.95        26.75           98.91
         ii Other un-allocable 
               expenditure net of 
               un-allocable income.       33.77         -1.45         -33.19          42.28         4.61          -29.42
                  
   Total Profit Before Tax &
   Exceptional Items                     111.86         72.64         264.16         124.19        77.57          293.85
                
   Exceptional Items             
   Write down of value of assets              -        (8.00)         (8.00)              -       (8.00)          (8.00)
   Provision for contingencies                -        (4.50)         (2.30)              -       (1.44)            2.01
                  
   Total Profit after Exceptional 
   Items & before Tax                    111.86         60.14         253.86         124.19        68.13          287.86
                
3  Capital Employed 
   (Segment assets- Segment 
   Liabilities)   
          
   a. Cement                            2293.84       2320.19        2305.03        2499.48      2390.63         2544.27
   b. Refractory                          62.58         61.97          63.21          62.58        61.97           63.21
   c. Ready Mix Concrete                  56.87         62.16          62.11          56.87        62.16           62.11
   d. Others                              25.39         23.90          22.47         180.85       169.73          171.83
      Sub-total                         2438.68       2468.22        2452.82        2799.78      2684.49         2841.42
      Capital work in progress           163.27         93.01          96.46         164.24        93.24           96.79

Capital Employed excludes assets not allocable to specific segment & Investments.

Notes:  1) Current quarter consolidated figures are not comparable with the 
           previous quarter consolidated figures to the extent that Bargarh 
           Cement Limited (Subsidiary Company) was acquired on December 23,2003 
           and which is consolidated as per Accounting Standard (AS) 21.
        2) Previous period figures have been regrouped wherever necessary. 

V.   Sales volume of cement including traded cement at 38.85 Lakh Tonnes for Q1
     2004-05 was marginally higher as compared to the corresponding previous 
     period. Total income for Q1 2004-05 has gone up by 16% to Rs.962.47 crore 
     due to improved price realisation as against Rs.828.71 crore in the 
     corresponding previous period. 

     During the quarter industry faced severe problem in availability and
     transportation of coal. This together with increase in price of coal, 
     gypsum, diesel & freight resulted in pressure on cost which was neutralised 
     largely by way of improved operating efficiencies. 

     Profit before interest, depreciation, exceptional items and tax for Q1 
     2004-05 was higher at Rs.176.65crore as compared to Rs.141.16 crore in the 
     previous period registering an increase of 25%.

     Interest cost for Q1 2004-05 came down by 16% over previous period due to
     reduction in interest rates and improved financial and working capital
     management.

     Depreciation for Q1 2004-05 was marginally higher at Rs.43.91 crore 
     compared to Rs.43.56 crore for the corresponding previous period.

     The profit before tax was higher at Rs.111.86 crore as compared to Rs.60.14
     crore for the corresponding previous period denoting an increase of 86%. 
     The net profit during Q1 2004-05 is higher by 84% at Rs.81.23 crore as 
     compared to Rs.44.14 crore in the previous period.

     RMC and Refractory businesses have reported continued growth in sales and
     profitability.

VI   New Projects / Modernisation 

     The modernisation programme at Chaibasa including installation of a 15 MW
     Captive Power Plant is progressing as per schedule. The company is 
     augmenting its grinding capacity at Gagal by 1 million tonne.

VII. OUTLOOK

     The Cement Industry has posted a lower growth of around 2.3% in Q1 2004-05 
     as compared to 4.5% in the corresponding period of the previous year. The 
     continued emphasis in Finance Bill 2004 on infrastructure such as roads, 
     airports and housing augurs well for the cement industry and it is expected 
     to do better in the remaining period of the financial year. Also as no new 
     large capacities are in the pipeline, the demand supply dynamics of the 
     Industry is expected to turn favourable leading to stability in cement 
     prices. 

VIII Consolidated Financial Statements

     It may be observed from the Consolidated results that the net profit for 
     the group for the quarter ended June 30,2004 amounted to Rs.86.78crore as 
     compared to Rs.81.23crore for the company. 



                                                  ( M.L.Narula )
                                                 MANAGING DIRECTOR

Mumbai - July 22, 2004




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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