ACC Limited

	(formerly The Associated Cement Companies Limited)

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

CONSOLIDATED AND STANDALONE UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED JUNE 30, 2006.

CONSOLIDATED SALES VOLUME FOR Q-2 2006- 4.63 MT UP BY 4.3 %.
CONSOLIDATED SALES VALUE FOR Q-2 2006 UP BY 21%
(STANDALONE UP BY 29%)

I. The following unaudited accounts of the quarter ended June 30, 2006 which have been subjected to a limited review by the auditors have been reviewed by the audit committee and have been approved by the Board of Directors of the Company at its meeting held on July 19, 2006. The text of this statement was also taken on record.

II. CONSOLIDATED RESULTS

	Particulars	QUARTER ENDED	QUARTER ENDED	SIX MONTHS ENDED	SIX MONTHS ENDED	YEAR (NINE MONTHS) ENDED
		June 30,2006	JUNE 30, 2005	JUNE 30, 2006	JUNE 30, 2005	DECEMBER 31, 2005
		REVIEWED	UNAUDITED	REVIEWED	UNAUDITED	AUDITED
		Rs.Crore	Rs.Crore	Rs.Crore	Rs.Crore	Rs.Crore
1	SALES / INCOME FROM OPERATIONS	1635.73	1378.60	3184.81	2736.18	3878.66
	LESS: EXCISE DUTY RECOVERED	158.26	162.43	351.73	335.54	497.72
	NET SALES / INCOME FROM OPERATIONS	1477.47	1216.17	2833.08	2400.64	3380.94

2	OTHER INCOME
	i) Dividend	5.32	0.70	9.30	0.76	4.95
	ii) Gain/(Loss) on foreign exchange (Net)	(5.75)	2.04	(3.37)	1.33	(7.08)
	iii) Other items	16.22	23.38	34.73	51.74	61.05
	iv) Other non-recurring items	0.23	-	7.93	1.50	16.82

3	Share of earnings of Associates	0.39	0.32	0.72	0.79	1.20
	TOTAL (1+2+3)	1493.88	1242.61	2882.39	2456.76	3457.88

4	TOTAL EXPENDITURE
	a)( Increase) /Decrease in stock in trade	(49.03)	(27.89)	14.16	(13.24)	(53.71)
	b) Consumption of Raw materials	170.51	214.04	338.40	413.32	564.18
	c) Staff cost	83.10	65.43	172.07	132.01	199.15
	d) Power & Fuel	255.28	226.84	486.76	422.38	678.87
	e) Outward Freight charges on Cement etc.	216.40	180.21	415.87	318.05	532.72
	f) Excise Duties (Net)	37.40	35.20	43.08	50.89	45.43
	g) Purchase of Cement & Other Products	18.43	20.08	28.71	41.34	47.90
	h) Other Expenditure	279.71	251.41	533.75	587.76	775.28
	Total Expenditure	1011.80	965.32	2032.80	1952.51	2789.82

5	PROFIT BEFORE INTEREST,
	DEPRECIATION, MINORITY INTEREST, EXCEPTIONAL ITEMS AND TAX (1+2+3-4 )	482.08	277.29	849.59	504.25	668.06

6	INTEREST (NET)	15.24	22.97	35.12	44.43	65.97

7	DEPRECIATION	59.85	55.03	121.19	112.85	171.71

8	MINORITY INTEREST	0.22	2.84	0.49	4.82	4.13

9	PROFIT/(LOSS) AFTER MINORITY INTEREST & BEFORE TAX & EXCEPTIONAL ITEMS (5-6-7-8)	406.77	196.45	692.79	342.15	426.25

10	EXCEPTIONAL ITEMS
	a) Profit on sale of land and undertakings	146.39	8.76	147.79	20.80	182.81
	b) Write back of / ( Provision) for contingencies	-	-	-	-	1.44
	c) Employee Benefits- Prior Period	-	-	-	-	(13.15)
	d) Profit from Divestment of Subsidiary	-	-	-	-	69.00

11	PROFIT/(LOSS) AFTER EXCEPTIONAL ITEMS
	& BEFORE TAX ( 9+10)	553.16	205.21	840.58	362.95	666.35

12	PROVISION FOR TAX (INCLUDING FRINGE BENEFIT TAX)	141.37	56.26	197.45	31.76	152.62

13	PROFIT/(LOSS) AFTER PROVISION FOR
	TAXATION & EXCEPTIONAL ITEMS (11-12)	411.79	148.95	643.13	331.19	513.73

14	Paid- up Equity share capital	187.23	179.15	187.23	179.15	184.72
	(Face value per share Rs.10)
15	Reserves excluding Revaluation Reserves					1966.19

16	Basic Earnings per Share Rs.	22.05	8.34	34.55	18.54	28.34
	Diluted Earnings per Share Rs.	21.91	8.00	34.24	17.81	27.48

17	Aggregate of Non-Promoter Shareholding
	Number of Shares	12,10,58,693	11,69,75,655	12,10,58,693	11,69,75,655	12,25,46,336
	Percentage of shareholding	64.77%	65.37%	64.77%	65.37%	66.42%

Notes:

The consolidated financial results are prepared in accordance with the Accounting Standard (AS) 21 "Consolidated Financial Statements" and (AS) 23 "Accounting for Investments in Associates in Consolidated Financial Statements" issued by the Institute of Chartered Accountants of India.
Exceptional items include;
(a) Profit on sale of land for the quarter ended June 30, 2006 Rs.130.19 crore (Rs.131.59 crore for six months ended June 30, 2006) and
(b) Profit on sale of Mancherial Cement Plant for quarter and six months ended June 30, 2006 Rs.16.20 crore
Other non-recurring item of Rs.7.93 crore for the six months ended June 30, 2006 is in respect of profit on sale of investments.
Current quarter and six months ended June 30, 2006 consolidated figures are not comparable with the previous quarter and six months ended June 30, 2005 consolidated figures to the extent that Tarmac ( India) Private Ltd. was acquired on December 12, 2005 and which is consolidated as per Accounting Standard (AS)21.
Provision for tax, for the six months ended June 30, 2006 includes a charge of Rs. 18.86 crore pertaining to the period April - December 2005.
The previous financial year was for the period from April 1, 2005 to December 31, 2005. The comparative figures for six months ended June 30, 2005 have been provided by aggregating the figures for the quarters ended on March 31, 2005 (extracted from the audited financial statements) and June 30, 2005.
During the previous period the Company divested certain non core businesses as mentioned below:
(i) Divestment of Refractory Business w.e.f September 30, 2005 and
(ii) Divestment of stake in Everest Industries Limited (EIL) erstwhile subsdiary w.e.f October 14, 2005. Accordingly, the results for the quarter and six months ended June 30, 2006 are not comparable with the respective previous periods.
EPS for the quarters/ six months are not annualised.
Previous period figures have been regrouped wherever necessary.

III. STANDALONE FINANCIAL RESULTS

		QUARTER	QUARTER	SIX MONTHS	SIX MONTHS	YEAR (NINE MONTHS)
		ENDED	ENDED	ENDED	ENDED	ENDED
		JUNE 30, 2006	JUNE 30, 2005	JUNE 30, 2006	JUNE 30, 2005	DECEMBER 31, 2005
		REVIEWED	UNAUDITED	REVIEWED	UNAUDITED	AUDITED
		Rs. Crore	Rs. Crore	Rs. Crore	Rs. Crore	Rs. Crore

1	SALES / INCOME FROM OPERATIONS	1619.43	1294.08	3154.00	2581.86	3717.37
	LESS: EXCISE DUTY RECOVERED	157.35	162.95	349.92	335.73	496.48
	NET SALES / INCOME FROM OPERATIONS	1462.08	1131.13	2804.08	2246.13	3220.89

2	OTHER INCOME
	i) Dividend	5.32	8.97	14.11	8.97	17.29
	ii) Gain/(Loss) on foreign exchange (Net)	(6.18)	1.96	(3.69)	0.66	(7.16)
	iii) Other items	16.18	23.37	35.02	51.15	54.92
	iv) Other non-recurring items	0.23	-	7.93	1.50	16.76

3	TOTAL INCOME (1+2)	1477.63	1165.43	2857.45	2308.41	3302.70

4	TOTAL EXPENDITURE

	a) ( Increase) /Decrease in stock in trade	(50.98)	(32.14)	13.24	(14.55)	(45.26)
	b) Consumption of Raw materials	166.79	188.00	329.28	345.65	502.70
	c) Staff cost	81.82	59.10	169.44	115.12	184.84
	d) Power & Fuel	253.20	223.25	482.66	412.66	669.86
	e) Outward Freight charges on Cement etc.	218.00	175.06	419.06	314.47	524.70
	f) Excise Duties (Net)	37.38	34.00	43.10	36.75	43.23
	g) Purchase of Cement & Other Products	15.32	18.54	25.60	117.01	45.30
	h) Other Expenditure	284.93	241.95	536.54	528.33	752.50
	Total Expenditure	1006.46	907.76	2018.92	1855.44	2677.87


5	PROFIT BEFORE INTEREST, DEPRECIATION,
	EXCEPTIONAL ITEMS AND TAX (3-4)	471.17	257.67	838.53	452.97	624.83

6	INTEREST (NET)	14.74	22.22	34.11	42.59	63.76

7	DEPRECIATION	57.94	52.06	117.31	99.90	164.37

8	PPROFIT/(LOSS) BEFORE EXCEPTIONAL ITEMS & TAX (5-6-7)	398.49	183.39	687.11	310.48	396.70

9	EXCEPTIONAL ITEMS
	a) Profit on sale of land and undertakings	146.39	8.76	147.79	20.80	182.81
	b) Write back of / ( Provision) for contingencies	-	-	-	-	7.50
	c) Employee Benefits- Prior Period	-	-	-	-	(13.15)
	d) Profit from Divestment of Subsidiary	-	-	-	-	110.26

10	PROFIT/(LOSS) AFTER EXCEPTIONAL ITEMS
	& BEFORE TAX (8+9)	544.88	192.15	834.90	331.28	684.12

11	PPROVISION FOR TAX (INCLUDING FRINGE BENEFIT TAX)	139.30	49.71	193.84	23.32	139.94

12	PROFIT/(LOSS) AFTER PROVISION FOR
	TAXATION & EXCEPTIONAL ITEMS (10-11)	405.58	142.44	641.06	307.96	544.18

13	Paid- up Equity share capital	187.23	179.15	187.23	179.15	184.72
	(Face value per share Rs.10)
14	Reserves excluding Revaluation Reserves					1951.21

15	Basic Earnings per Share Rs.	21.72	7.97	34.44	17.24	30.02
	Diluted Earnings per Share Rs.	21.58	7.65	34.13	16.57	29.10

16	Aggregate of Non-Promoter Shareholding
	Number of Shares	12,10,58,693	11,69,75,655	12,10,58,693	11,69,75,655	12,25,46,336
	Percentage of shareholding	64.77%	65.37%	64.77%	65.37%	66.42%

	Information on investor complaints pursuant to clause 41 of the listing agreement for the quarter ended June 30, 2006

	Particulars	Complaints	Complaints	Complaints disposed	Complaints
		pending at the	received during	off and resolved during	pending at the
		beginning of	the quarter ended	the quarter ended	end of
		the quarter	June 30, 2006	June 30, 2006	the quarter
		-	23	23	-

Notes:

Exceptional items include;
(a) Profit on sale of land for the quarter ended June 30, 2006 Rs.130.19 crore (Rs.131.59 crore for six months ended June 30, 2006) and
(b) Profit on sale of Mancherial Cement Plant for quarter and six months ended June 30, 2006 Rs.16.20 crore.
Other non-recurring item of Rs.7.93 crore for the six months ended June 30, 2006 is in respect of profit on sale of investments.
The projects at Lakheri Cement Works for expansion of capacity and setting up 25MW Captive Power Plant are in progress. The Company is taking up expansion of Bargarh Cement Works from 0.96 MTPA to 2.14 MTPA and setting up 30 MW Captive Power Plant at a Capital outlay of Rs.537.00 crore.
The scheme of amalgamation of Tarmac (India) Private Ltd. into the Company has been approved by the Shareholders. Pending final order of the High Court, the results for the period ended June 30, 2006 do not reflect any adjustment that would arise on the amalgamation.
During the quarter the paid up Equity Share Capital of the Company increased by Rs. 0.41 crore on account of allotment of 4,10,349 shares consequent to the exercise of conversion option by Bondholders on 3396 Foreign Currency Convertible Bonds of an aggregate value of Rs. 15.36 crore at a conversion price of Rs.374.42 per share.
Provision for tax, for the six months ended June 30, 2006 includes a charge of Rs. 18.86 crore pertaining to the period April - December 2005.
The previous financial year was for the period from April 1, 2005 to December 31, 2005. The comparative figures for six months ended June 30, 2005 have been provided by aggregating the figures for the quarters ended on March 31, 2005 (extracted from the audited financial statements) and June 30, 2005.
During the previous period the Company divested certain non core businesses while merging cement businesses carried on by its subsidiaries with itself. As a result, the following events have been effected in the accounts:
(i) Amalgamation of Bargarh Cement Limited (BCL) and Damodhar Cement and Slag Limited (DCSL) w.e.f April 1, 2005 and
(ii) Divestment of Refractory Business w.e.f September 30, 2005.
Accordingly, the results for the quarter and six months ended June 30, 2006 are not comparable with the respective previous periods.
EPS for the quarters/ six months are not annualised.
The previous period figures have been recast to reflect the amalgamation of Bargarh Cement Limited (BCL) and Damodhar Cement and Slag Limited (DCSL) w.e.f April 1, 2005, which had been recorded in the quarter ended December 31, 2005 pursuant to receipt of necessary court orders. Further the previous period figures have been regrouped wherever necessary.

IV Segment wise Revenue, Results and Capital Employed

		Consolidated					Standalone
	Particulars	Quarter	Quarter	Half Year	Half Year	YEAR (Nine Months)	Quarter	Quarter	Half Year	Half Year	YEAR (Nine Months)
		ended	ended	ended	ended	ended	ended	ended	ended	ended	ended
		June 30,2006	June 30,2005	June 30,2006	June 30,2005	December 31,2005	June 30,2006	June 30,2005	June 30,2006	June 30,2005	December 31,2005

		Reviewed	Unaudited	Reviewed	Unaudited	Audited	Reviewed	Unaudited	Reviewed	Unaudited	Audited
		Rs.Crore	Rs.Crore	Rs.Crore	Rs.Crore	Rs.Crore	Rs.Crore	Rs.Crore	Rs.Crore	Rs.Crore	Rs.Crore
1	Segment Revenue ( net
	sale/ income from each
	segment )


a.	Cement	1382.22	989.89	2647.18	1968.22	2863.99	1382.25	984.08	2646.74	1967.27	2863.88
b.	Refractory	-	73.97	-	137.24	136.31	-	73.97	-	137.24	136.31
c.	Ready Mixed Concrete	78.92	54.74	151.96	103.63	171.42	72.15	54.74	139.69	103.63	171.42
d.	Others	59.82	124.68	112.38	246.05	294.58	35.43	35.77	68.73	75.69	110.62

	Total	1520.96	1243.28	2911.52	2455.14	3466.30	1489.83	1148.56	2855.16	2283.83	3282.23

Less:	Inter segment revenue	43.75	27.22	78.79	54.62	85.57	28.01	17.54	51.43	37.83	61.55

	Net sales / income from	1477.21	1216.06	2832.73	2400.52	3380.73	1461.82	1131.02	2803.73	2246.00	3220.68
	operations

	Income from non-segmental operations	0.26	0.11	0.35	0.12	0.21	0.26	0.11	0.35	0.13	0.21

	Total	1477.47	1216.17	2833.08	2400.64	3380.94	1462.08	1131.13	2804.08	2246.13	3220.89

2	Segment Results
	(Profit + /(Loss)(-) before
	tax and interest )

a.	Cement	425.76	190.74	728.56	351.94	446.31	424.47	180.45	725.75	316.21	441.28
b.	Refractory	-	13.23	-	26.62	24.58	-	13.23	-	26.62	24.58
c.	Ready Mixed Concrete	3.69	4.51	7.80	9.46	10.43	3.59	4.51	7.76	9.46	10.43
d.	Others	13.00	23.47	18.02	31.36	55.25	10.20	5.94	14.85	15.33	23.38

	Total	442.45	231.95	754.38	419.38	536.57	438.26	204.13	748.36	367.62	499.67
	Less: i Interest	15.24	22.97	35.12	44.43	65.97	14.74	22.22	34.11	42.59	63.76
	ii Other un-allocable	20.44	12.53	26.47	32.80	44.35	25.03	-1.48	27.14	14.55	39.21
	expenditure net of
	un-allocable income.

	Total Profit Before Tax &	406.77	196.45	692.79	342.15	426.25	398.49	183.39	687.11	310.48	396.70
	Exceptional Items

	Exceptional Items
a.	Profit on sale of land and undertakings	146.39	8.76	147.79	20.80	182.81	146.39	8.76	147.79	20.80	182.81
b.	Write back of / ( Provision ) for contingencies	-	-	-	-	1.44	-	-	-	-	7.50
c	Employee Benefits- Prior Period					(13.15)					(13.15)
d	Profit from Divestment of Subsidiary					69.00					110.26

	Total Profit after Exceptional	553.16	205.21	840.58	362.95	666.35	544.88	192.15	834.90	331.28	684.12
	Items & before Tax

3	Capital Employed
	(Segment assets- Segment
	Liabilities)

a.	Cement	3008.92	2780.50	3008.92	2780.50	3267.70	2976.97	2749.97	2976.97	2749.97	3057.25
b.	Refractory	-	72.56	-	72.56	-	-	72.56	-	72.56	-
c.	Ready Mixed Concrete	63.64	50.32	63.64	50.32	63.26	46.18	50.04	46.18	50.04	49.29
d.	Others	73.13	197.47	73.13	197.47	83.09	17.11	24.50	17.11	24.50	27.61
	Sub-total	3145.69	3100.85	3145.69	3100.85	3414.05	3040.26	2897.07	3040.26	2897.07	3134.15
	Capital work in progress	381.06	385.71	381.06	385.71	217.75	384.05	352.25	384.05	352.25	215.68

Notes:

Exceptional items include;
(a) Profit on sale of land for the quarter ended June 30, 2006 Rs.130.19 crore (Rs.131.59 crore for six months ended June 30, 2006) and
(b) Profit on sale of Mancherial Cement Plant for quarter and six months ended June 30, 2006 Rs.16.20 crore.
The previous financial year was for the period from April 1, 2005 to December 31, 2005. The comparative figures for six months ended June 30, 2005 have been provided by aggregating the figures for the quarters ended on March 31, 2005 (extracted from the audited financial statements) and June 30, 2005.
During the previous period the Company divested certain non core businesses as mentioned below:
(i) Divestment of Refractory Business w.e.f September 30, 2005,
(ii) Divestment of stake in Everest Industries Limited (EIL) erstwhile subsidiary w.e.f October 14, 2005.
Accordingly, the result for the quarter and six months ended June 30, 2006 are not comparable with the respective previous periods.
The previous period figures have been recast to reflect the amalgamation of Bargarh Cement Limited (BCL) and Damodhar Cement and Slag Limited (DCSL) w.e.f April 1, 2005, which had been recorded in the quarter ended December 31, 2005 pursuant to receipt of necessary court orders. Further the previous period figures have been regrouped wherever necessary.

(M.L.Narula)

MANAGING DIRECTOR

Mumbai - July 19, 2006