PRESS RELEASE                  

Excellent Performance By Gujarat Ambuja Cements for the 4th quarter ending June 2006  

                                                                                                                                                 July 20, 2006

Sales up 56 % at Rs. 1155 crores
Profit After Tax more than doubles at Rs. 360 Crores
 

 

Consolidated

Gujarat Ambuja Cements Limited has achieved outstanding results for the 4th quarter ending 30th June, 2006. Net Profit After Tax has more than doubled at Rs. 360.07 crores as against Rs.171.18 crores in the corresponding quarter of the previous year. Turnover has gone up to Rs.1154.57 crores from Rs. 739.50 crores in the previous year, an increase of 56%.

Standalone

Correspondingly, on the standalone basis also company has performed exceedingly well for the 4th quarter ending 30th June, 2006. The Net Profit After Tax has more than doubled at Rs.303.89 crores as against Rs. 145.17 crores in the previous year.

The Company sold 3.77 million tonnes of cement as against 3.28 million tonnes in the corresponding quarter of the previous year, an increase of over 15%. Turnover is up 57% at Rs. 1134.24 crores as compared to Rs. 720.52 crores during the corresponding quarter of the previous year. Operating Profit (excluding exchange rate difference) is Rs. 451.89 crores as against Rs.230.89 crores in the corresponding quarter of the previous year, an increase of 96%.

Despite increase in the energy and freight costs, the EBIDTA (excluding Exchange Rate Difference) has increased to 40% from 32% in the previous period. This is on account of all round improvement in the productivity and the efficiencies of the operations coupled with better selling prices in domestic as well as export markets.

Interest Costs is substantially lower at Rs. 12.29 crores as against Rs. 22.64 crores. After providing for Depreciation of Rs. 49.67 crores (Rs.46.61 crores) and Tax (including current, deferred and fringe benefit tax) of Rs. 67.50 crores, the Net Profit is substantially higher at Rs.303.89 crores as against Rs. 145.17 crores, an increase of 109%.

Outlook

The economy grew by 8.4% during the FY 2005–06 backed by strong growth in the Construction and Manufacturing sector. This strong economic growth has continued in the first quarter of the FY 2006-07 and has resulted in a cement growth of 9.5% 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.

 

Manish Agarwal
General Manager - Treasury & Corporate Strategies

 

 

Click here for Unaudited Fianacial Results of GACL Q4 2006