PRESS RELEASE January 29, 2003
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GUJARAT
AMBUJA CEMENTS LIMITED PERFORMS
VERY WELL DURING IInd QUARTER ENDING DECEMBER02
Sales
up by 22% to Rs.487 crores
Profits up by 12% to Rs. 56.46 crores
Gujarat Ambuja Cements Limited has performed very well during the second quarter ending December 2002.
During this quarter (October December 2002), the company has sold 23.02 lac tonnes of cement as against 18.02 lac tonnes in the IInd quarter of previous year, an increase of 28%. The Turnover is up at Rs.486.98 crores as against Rs.399.19 crores, an increase of 22%.
High productivity and further reduction in costs have helped the company to post good results despite low cement prices prevailing during the quarter. Company made an Operating Profit of Rs. 135.62 crores as against Rs.121.05 crores. The interest expenses have remained unchanged at Rs.26.11 crores as against Rs.26.13 crores, inspite of commissioning of cement plant at Chandrapur costing over Rs.700 crores. Depreciation has gone up to Rs.43.90 crores (due to new cement plant at Chandrapur) as against Rs.33.73 crores. The Profit before tax is Rs.65.61 crores as against Rs.61.19 crores. After providing Rs.9.15 crores for current and deferred tax (as against Rs.10.75 crores in the previous years IInd quarter), the profit after tax is Rs. 56.46 crores as against Rs.50.44 crores, an increase of 12%.
In a recent Global Survey conducted by the Financial Times, London, Gujarat Ambuja Cements Limited has been placed among the worlds most respected companies in the Property and Construction Sector. GACL is the only other cement company apart from Lafarge to be placed in this coveted position.
Ambuja Cement Eastern Limited, the subsidiary company of GACL has performed very well during the quarter October-December02. It made a Net Profit of Rs.7.46 crores during the quarter against a loss of Rs.5.39 crores in the corresponding quarter of the previous year on a Turnover of Rs.86.80 crores (previous period Rs.89.53 crores)
Similarly Ambuja Cement Rajasthan Limited, an associate company, has also put up a good performance. It has been able to earn a Cash Profit of Rs.5.26 crores against a cash loss of Rs.4.11 crores. It posted a marginal loss of Rs.1.08 crores (against a loss of Rs.10.36 crores). It is expected to improve its performance further and post net profit in the near future.
The demand for cement in the country continues to grow very well and for the 12 months ending December02, the cement despatches were 109.26 million tonnes as against 98.49 million tonnes, an increase of 11%. With the road construction programme now at full speed and continued good demand for housing, it is expected that demand for cement would continue to be very good.
Anil
Singhvi,
Whole-Time Director