PRESS
RELEASE
July 30, 2005
Reports
excellent performance for 2004-05
(I)
Sales up by
28% to Rs. 3085 crores
(II) Profit After Tax up by
43% to Rs. 518 crores
(III) Dividend
(Final) 30%, Total 90%
Gujarat Ambuja Cements Limited
has performed exceedingly well during 2004-05. On Turnover
of Rs. 3085.47 crores, it has made a
Profit After Tax of Rs. 518.09 crores as against Rs.
2414.96 crores and Rs. 362.43 crores respectively.
After a long spell of time,
cement industry is experiencing good demand growth and better cement prices in
domestic as well as international markets. Though there has been cost push on
account of sharp increase in the prices of
coal and oil but due to overall efficiency, better productivity and
better prices, the Operating Margins
have been higher at 30%.
Company earned an Operating Profit of Rs. 927.82 crores as against Rs. 709.87
crores, an increase of 31%. After providing for interest of Rs.
90.21 crores (previous year Rs. 90.06 crores) and depreciation and tax,
the Net Profit After Tax is Rs. 518.09 crores as against Rs. 362.43
crores, an increase of 43%.
During the year, on standalone
basis, company sold 12.75 million tonnes
of cement as compared to 10.44 million
tonnes in the previous year, an increase
of 22%.
DIVIDEND 90%
(including interim 60%)
Encouraged by good performance,
the Board of Directors have recommended a final dividend of 30% (
on expanded capital arising out of bonus issue in the ratio of 1:2). The total amount of dividend including tax is Rs.
215.70 crores, a payout ratio of 46%.
OUTLOOK FOR THE CURRENT YEAR
Despite a very low growth rate
at the beginning of 2004-05, the cement industry grew by around 7% during
2004-05, with total despatch of 131 million tonnes
including export of cement and clinker.
The current year has begun with
a very good cement demand. For the 1st quarter (April/ June 05)
cement despatches of the industry grew by 12%. Economy is growing very well and
on back of a good monsoon, it is expected that overall economic growth and
growth in construction sector to be very good. This augurs well for the cement
industry in India which is likely to grow at around 8% during the current year.
ANIL SINGHVI
WHOLE-TIME DIRECTOR