Gujarat Ambuja Cements Limited has performed well during the second quarter of FY 2003-04. The Company sold 2.55 million tonnes of cement as against 2.30 million tonnes in the corresponding quarter of the previous year, an increase of 11%. The Turnover is up 4% at Rs. 434.44 crores during the quarter as compared to Rs. 419.34 crores during the corresponding quarter of the previous year.

The heavy monsoon had impacted the construction activity in the country, which had resulted in a lower cement off-take and lower cement prices, which continued till November 2003. The sales realisation were lower by 6% as compared to the corresponding quarter of the previous year. The Operating Profit was Rs.112.61 crores as against Rs. 140.45 crores in the corresponding quarter of the previous year. Interest cost came down to Rs. 22.11 crores as against Rs.26.11 crores, a decrease of 15%. After providing Depreciation of Rs. 40.61 crores (Rs.43.90 crores), Tax and exceptional items, the Net Profit is at Rs. 59.54 crores as against Rs. 60.32 crores.

Cement demand has started picking up from December 2003. On back of good demand, cement prices have started moving up from a very low level reached in September 2003.

It is expected that Road and House construction activity will accelerate in the coming months and the current upsurge in economic activity in the country would generate good demand for cement. The company expects the second half of the current financial year to be much better due to good cement demand and better prices.