OUTSTANDING PERFORMANCE BY Gujarat Ambuja Cement
DURING THE 3RD QUARTER ENDING MARCH 2003

Gujarat Ambuja Cements Limited has done exceedingly well during the 3rd quarter ending March 2003. It’s net profit after tax has gone up to Rs.66.86 crores as against Rs.54.77 crores in the previous year, an increase of 22%.

During the quarter company has achieved many milestones in terms of productivity at its cement plants. During the month of March 2003, the company has produced a record 1 million tonnes cement. During the quarter ending March 2003, the company has sold 2.72 million tonnes of cement against 2.00 million tonnes during the corresponding quarter of the previous year, an increase of 36%. The Turnover has gone up to Rs.546.75 crores from Rs.430.35 crores, an increase of 27%.

Despite continued low cement prices, high cost of fuel and increase in Excise Duty, the company has put up an excellent operating performance. All the cement plants have performed well except its packaging unit at Panvel, near Mumbai due to transport strike. In the interim, despatches of cement to Mumbai are being made from its plant at Maharashtra.

The Operating Profit is up at Rs.144.79 crores as against Rs.120.77 crores in the previous year. The interest expenses are at Rs.19.04 crores as against Rs.21.83 crores. After providing for depreciation Rs.43.19 crores (Rs.33.72 crores for previous quarter), Profit before tax is Rs.82.56 crores as against Rs.65.22 crores, an increase of 27%. After providing for current tax Rs.6.25 crores (Rs.4.50 crores) and deferred tax of Rs.9.45 crores (Rs.5.95 crores), the Profit after tax is Rs.66.86 crores as against Rs.54.77 crores, an increase of 22%.

The Board of Directors in its Board Meeting held today have proposed to pay an Interim Dividend of 30% for the financial year ending June 2003.

The demand of cement continues to be very good. The cement industry has produced 111.35 million tonnes of cement, an increase of 8.7% and despatched 111.06 million tonnes of cement, an increase of 8.5% for the fiscal year ending March 2003. It is expected that due to good growth in construction industry, the demand for cement will continue to be very good during the current year.