Excellent Performance By Gujarat Ambuja Cements LTD.

(a) Sales Volume Up - 5%
(b) Profit After Tax up - 40%

Gujarat Ambuja Cements Limited has performed well during the first quarter of FY 2003-04. The Company sold 2.24 million tonnes of cement as against 2.14 million tonnes in the corresponding quarter of the previous year, an increase of 5%. The Turnover is almost same at Rs. 373.55 crores during the quarter as compared to Rs. 373.26 crores during the corresponding quarter of the previous year.

Due to extra ordinary monsoon during the quarter, the demand of cement was low in the country at 4.5%. The heavy monsoon impacted the construction activity in the country, which resulted in low off take of cement and lower cement prices. Despite such adversities, the company has done well due to its continued emphasis of lowering the cost. Due to further reduction in cost of power, fuel and interest, company was able to post good results.

The sales realisation were lower by 5% as compared to the corresponding quarter of the previous year. The Operating Profit was Rs. 80.01 crores as against Rs. 84.64 crores in the corresponding quarter of the previous year. Interest cost came down to Rs.19.53 crores as against Rs.22.02 crores, a decrease of 11%. After providing Depreciation of Rs.42.59 crores (Rs.43.40 crores) and after providing Tax and exceptional items, the Net Profit is up by 40% at Rs.18.11 crores as against Rs.12.93 crores

Click here for Audited Financial Results

Anil Singhvi,
Whole-Time Director