Full Year Peroformance 2003-2004
 (a) Sales up by 13% to Rs. 1968 Crores
 (b) Profit After Tax up by 52% to Rs.337 Crores
 (c) Earning per share increased to Rs. 21 per share against Rs.14 per share
 (d) Dividend 80% (including interim of 50%)  

Gujarat Ambuja Cements Limited (GACL) has performed exceedingly well during 2003-2004. Its Net Profit After Tax has gone up by 52% to Rs. 337 crores  as against Rs.222 crores.  

The past one year was a very challenging year for the Cement Industry, wherein cement prices remained very low for the first half of the year.  Thereafter there has been improvement in cement prices across all the markets.  On the cost side,  there have been sharp increases in the cost of coal.  Similarly, fuel prices have also gone up,  increasing the cost of power generation and freight.   The company has been able to contain these cost increases and has posted excellent results due to higher productivity and overall efficiency of operations. 

Company during the year  sold 10.44 million tonnes  of cement as compared to 9.81 million tonnes in the previous year, an increase of  6%. The Turnover  is up at  Rs.1968 crores from Rs.1742 crores, an increase of  13%.  

The Operating Profit is Rs.588 crores as against Rs.513 crores in the previous year, an increase of 15%.  Interest expenses are at Rs.78 crores as against  Rs. 88  crores, a reduction of  11%.  After charging Depreciation of  Rs.169 crores  ( previous year    Rs.171 crores), the Profit Before Tax is higher at Rs. 341 crores as against Rs. 254 crores.  The Net Profit is Rs.337 crores as against  Rs.222 crores in the previous year, an increase of 52%, after providing for Taxation of Rs.47 crores as against Rs.32 crores in the previous year and adjusting  for prior period items. 

4th QUARTER PERFORMANCE 

(a)               Sales up by 26% to Rs.595 crores  

(b)        Profit After Tax up by 50%  to Rs.117 crores  

It  has performed exceedingly well during the  4th quarter ending June 2004.   The Net Profit After Tax  is up by 50% to Rs.117 crores as against Rs.78 crores in the previous year.   This is after providing for Rs.27 crores (credit of Rs.7 crores in the previous year) on account of Foreign Currency Rate difference on outstanding loans. 

The Turnover has gone up to Rs.595 crores from Rs. 471 crores, an increase of 26%. The Operating Profit is up at  Rs.184 crores as against Rs.143 crores, an increase of  29%.  The Profit After Tax has gone up by 50% to Rs.117 crores from Rs.78 crores in the previous year. 

The above results include the working of former Ambuja Cement Rajasthan Limited (ACRL) for one month from 1st June, 2004,  the date on which it merged with GACL.
 

DIVIDEND 80% (including interim 50%) 

Enthused by the encouraging performance, the Board of Directors have recommended an increased Dividend of 80% (including interim dividend 50%) as against 70% in the previous year.   The total payout on dividend (including tax) would be Rs.160 crores, a payout ratio of 48%. 

OUTLOOK FOR FY 2004-2005

The year 2003-2004 has been very good for the Indian Economy, which grew by 8.2%.  But cement has witnessed a low growth of just about 5.6% and slow growth continues even during the quarter ending June 2004.   This is largely  on account of South India which has been  showing a negative growth for past several months. 

The construction industry in India has been growing at a slower pace than other sectors of the economy. It is expected that due to increased impetus to the development of rural and urban infrastructure and robust growth in the housing sector,  demand of cement may rise to about 6% during the year.  This growth, albeit low, will help in reducing the imbalance of demand supply and stable cement prices.

Click here for Annual  Results -GACL
Click here for Annual  Results -ACEL

Anil Singhvi,
Whole Time Director