The losses would have been higher had the company not written back servicetax refunds from the Government aggregating to Rs 9.69 crore, a major partof which is yet to be realised by the company. Operating margins droppedsharply to 5.5 per cent from 8.5 per cent in the third quarter of theprevious fiscal.

As a result of its lacklustre performance in the third quarter, ACC reporteda loss of Rs 9.96 crore during the nine-month period ended December 31,1999, down from a net profit of Rs 55.12 crore in the corresponding periodof the previous fiscal.

The ACC scrip closed at Rs 219 on Bombay Stock Exchange, up from theTuesday's close of Rs 214. "The performance was better than the marketexpectations," a leading BSE broker said.

"Although there has been a robust demand growth in recent months, the pricesare still very depressed in the eastern and southern regions. While 37 percent of our total sales is in the east, another 34 per cent caters thesouthern markets. Our problems are mainly due to the higher weightage inthese markets," a senior ACC official said.

"Despite over 5.8 per cent growth in sales volume during the quarter endedDecember 31, 1999, as compared to the corresponding period of previous year,there has been a decline in price realisation of around 4.7 per cent duringthe same period," the company said in a statement.

Besides, losses during the last quarter increased due to the higherprovision for depreciation at Rs 31.59 crore, compared to Rs 26.17 crorelast year. Net sales during September-December was, however, higher at Rs662.06 crore, up from Rs 633.58 crore during the same period last fiscal.

Other income at Rs 9.69 crore (service tax refunds) was lower than last year(Rs 46.33 crore).

Sekhsaria deputy chairman of ACC
Gujarat Ambuja Cements (GACL) managing director Narotam Sekhsaria has takenover as the deputy chairman of the country's second largest cement maker,ACC. Sekhsaria, who was drafted into the ACC board along with AL Kapoorfollowing GACL's buyout of 7.2 per cent stake in the company, has now beenelevated as deputy chairman with effect from January 19, ACC informed theBombay Stock Exchange on Wednesday.

Insight
depressed prices in south tell on bottomline

Compared to gross profit (after interest but excluding other income) of Rs10.71 crore in the third quarter of 1998-99, ACC has posted gross loss of Rs6.28 crore in the third quarter of the current year. The prices in southernmarket are still down basically due to high clinker inventory. This isreflected in ACC's results and should be reflected in the results of thesouth-based majors. Since nobody expected ACC to post a profit, the stockhas appreciated on better than anticipated results. The captive power plantsbeing under construction are transferred at cost and hence no profit formsale of units will be reflected in the last quarter. On nine-month tonine-month basis, loss excluding other and dividend income has more thandoubled from Rs 25.83 crore to Rs 58.23 crore.

Urmik Chhaya