Ambuja Cement Eastern Limited PRESS RELEASE

July 24, 2002

(ACEL) FARES VERY WELL
OPERATING PROFIT UP BY 50% TO RS. 55.47 CRORES
PROFIT UP BY 72% TO Rs. 11.83 CRORES

ACEL, a subsidiary of Gujarat Ambuja Cements Limited has done very well during the financial year ended 30^th June, 2002. The company made a Net Profit of Rs. 11.83 crores as against Rs. 6.89 crores, an increase of 72%.

ACEL has sold 14.83 lac tonnes of cement and clinker as against 14.35 lac tonnes in the previous year. The turnover for the year was Rs. 366.35 crores as against Rs. 344.75 crores in the previous year, an increase of 6.3%.

The Operating Profit is up by 50% at Rs. 55.47 crores as against Rs. 37.06 crores in the previous year. The O/P Margin has risen to 17.6% from 12.5% as compared to the previous year. The Net Profit is substantially higher at Rs. 11.83 crores as against Rs. 6.89 crores, an increase of 72%. This profit is after charging a higher interest of Rs. 22.53 crores as against Rs. 11.50 crores. The depreciation was Rs. 27 crores as against Rs. 18.67 crores in the previous year. The interest and depreciation are higher on account of commissioning of the Grinding unit at Sankrail during the year.

The above performance was possible due to better sales realisation and continued efforts of the company to reduce costs on all the fronts.

Anil Singhvi,
Directori