Excellent Performance By Gujarat Ambuja Cements LTD.

4th QUARTER PERFORMANCE

(a) Sales up by 31% to Rs.470 crores.
(b) Profit After Tax up by 95% to Rs.78 crores

Gujarat Ambuja Cements Limited has performed exceedingly well during the 4th quarter ending June 2003. The Net Profit after tax has almost doubled to Rs.78.01 crores as against Rs.40.06 crores in the previous year.

The Turnover has gone up to Rs. 470.01 crores from Rs.357.60 crores, an increase of 31%. The Operating Profit is up at Rs.142.90 crores as against Rs.109.55 crores, an increase of 30%.

FULL YEAR PERFORMANCE 2002-2003

(a) Sales up by 25% to Rs.1735 crores.
(b) Profit After Tax up by 19% to Rs.222 crores

For the financial year ending June 2003 its Net Profit After Tax has gone up to Rs.221.73

crores as against Rs.186.52 crores in the previous year, an increase of 19%.

Despite the first half of the year being very challenging, the Company has fared commendably well due to improved productivity, reduction in energy cost and interest expenses. The Company during the year sold 9.81 million tonnes of cement as compared to 7.18 million tonnes in the previous year, an increase of 37%. The Turnover is up at Rs.1734.72 crores from Rs.1384.17 crores, an increase of 25%.

The Operating Profit is Rs.512.78 crores as against Rs.465.80 crores in the previous year, an increase of 10%. Interest expenses are at Rs.87.94 crores as against Rs. 96.64 crores, a reduction of 9%. After charging Depreciation of Rs.171.64 crores ( previous year Rs. 137.82 crores), the Profit Before Tax is higher at Rs. 253.20 crores as against Rs.231.34 crores.

After providing for current and deferred tax of Rs.31.47 crores as against Rs.44.82, the Profit After Tax is Rs.221.73 crores as against Rs.186.52, an increase of 19%.

DIVIDEND – 70% (including interim 30%)

Enthused by such an encouraging performance, the Board of Directors have recommended an increased Dividend of 70% (including interim dividend 30%) as against 60% in the previous year.

OUTLOOK FOR FY 2003-2004

Despatches of cement during the first quarter of the fiscal year 2003-2004 have been lower at over 4% due to transport strike in April 2003. Cement demand continues to be good and in the month of May-June it has grown at an average of 9%.

So far the progress of the monsoon is very good and if this is an indication of the monsoon, there is generally an expectation of good economic growth. We are confident that the cement growth during the remaining part of this year would be good and expect a 8 - 9% growth during 2003 - 2004.

Click here for Audited Financial Results

Anil Singhvi,
Whole-Time Director