AMBUJA CEMENT RAJASTHAN LIMITED TURNS THE CORNER
POST NET PROFIT OF RS. 0.21 CRORES FOR THE
SECOND QUARTER ENDED DECEMBER 2003

Ambuja Cement Rajasthan Limited, (ACRL) has performed very well during the quarter ended 31st December, 2003. The company has turned around this quarter and has made a Net Profit of Rs.0.21 crores as against a loss of Rs. 1.08 crores.

ACRL sold 4.01 lac tonnes of cement and clinker as against 3.96 lac tonnes of cement in the corresponding quarter of the previous year.Turnover in the second quarter is up 2% at Rs. 65.08 crores as against Rs. 63.77 crores as compared to the corresponding quarter of the previous year

Operating Profit is up by 9% at Rs. 16.58 crores as against Rs. 15.22 crores as compared to the same quarter of the previous year. The OP Margin is up at 25.4% as against 23.8% despite a drop in the realisation of approximately 4% on account of improved efficiencies. Interest cost is lower by 4% to Rs. 9.55 crores as against Rs. 9.96 crores. After charging depreciation of Rs. 6.82 crores (Rs.6.34 crores in the previous year) the company made a profit of Rs. 0.21 crores as against a loss of Rs. 1.08 crores.

The above performance was possible due to various steps taken by the company by reducing its operating, distribution and financial costs.

This tremendous turn around in the performance of ACEL was due to high productivity, lowering of costs, other operational efficiencies and better sales mix and realisations.