Excellent Performance By Gujarat Ambuja Cements for the 3rd quarter ending March 2006  

                                                                                                                                                 April 17, 2006

Sales up 5 % at Rs. 945.75 crores
Profit After Tax more than doubles at Rs. 315.70 Crores
Declares 50% Interim Dividend

Consolidated

Gujarat Ambuja Cements Limited has achieved outstanding results in the 3rd quarter ending 31st March, 2006. The Net Profit After Tax has more than doubled at Rs. 315.70 crores as against Rs. 155.60 crores in the corresponding quarter of the previous year. Turnover has gone up to Rs. 945.75 crores from Rs. 898.74 crores in the previous year, an increase of 5%. Operating Profit has gone up to Rs. 392.76 crores from Rs. 258.76 crores in the previous year, an increase of 52%.

Standalone

Correspondingly, the company has also performed outstandingly in the 3rd quarter ending 31st March 2006. The Net Profit After Tax has more than doubled at Rs. 298.59 crores as against Rs. 143.11 crores in the previous year.

The Company sold 3.65 million tonnes of cement as against 3.19 million tonnes in the corresponding quarter of the previous year, an increase of over 14%. Turnover is up 39% at Rs. 924.29 crores as compared to Rs. 667.24 crores during the corresponding quarter of the previous year. Operating Profit is Rs. 375.14 crores as against Rs.207.57 crores in the corresponding quarter of the previous year, an increase of 81%.

Despite increase in the energy and freight costs, the Operating Margin excluding Non-Recurring Income has increased to 37%. This is on account of all round improvement in the productivity and the efficiencies of the operations coupled with increased Sales Realisation.

Interest Costs is substantially lower at Rs. 10.54 crores as against Rs. 20.79 crores, a decrease of 49%. After providing for Depreciation of Rs. 50.86 crores (Rs.49.22 crores) and Tax (including current, deferred and fringe benefit tax) of Rs. 15.15 crores, the Net Profit is substantially higher at Rs.298.59 crores as against Rs. 143.11 crores, an increase of 109%.

Interim Dividend

Encouraged by the buoyant results, the Board of Directors in its Board Meeting held today have proposed to pay an Interim Dividend of 50% (Rs. 1/- per share of Rs. 2/- each) on the equity share capital of Rs. 271.02 crores.

Outlook

FY 2005–06 has been another very good year for the Indian economy and it is expected that the economy would have grown by around 8%. On the back of such a strong economic growth, the cement demand across the country is strong with most part of the country witnessing double digit growth resulting in cement despatch growth of over 11% for the FY 2005-06.

We are witnessing robust construction growth and with the infrastructure development set to gain momentum, it is expected that good cement growth will continue in the current year as well.

JAYESH DOSHI

VICE PRESIDENT (TREASURY)

Click here for Unaudited Fianacial Results of GACL Q3 2006