Despatches of Gujarat Ambuja Cements Limited

20 July 2007

For the Quarter ended June 30, 2007

· One-time, non-recurring, non-operating income of Rs.575 crore from sale of shares and property (see below).

Ambuja Cements Limited (ACL) saw its net sales rise by 11% — from Rs.1,314 crore for quarter ended June 30, 2006 to Rs.1,464 crore for the quarter ended June 30, 2007.

This has been accompanied by a 17% rise in operating EBITDA — from Rs.509 crore for the quarter ended June 30, 2006 to Rs.594 crore for the quarter ended June 30, 2007.

Due to net interest income and foreign exchange gains, operating profits after tax (operating PAT) has risen by 23% — from Rs.327 crore for the quarter ended June 30, 2006 to Rs.404 crore for the quarter ended June 30, 2007.

For the quarter ended June 30, 2007, the Company earned Rs.250 crore on sale of shares of Ambuja Cement India Private Limited to Holderind Investments Limited as per previous Call and Put option agreement.

In addition, the Company earned Rs.325 crore from the sale of its property at Kalina, Mumbai.

Thus, the total one-time, non-recurring and non-operating income for the quarter amounted to Rs.575 crore.

Inclusive of this income, the Company’s PBT was Rs.1,132 crore, and PAT was Rs.878 crore.

The company has capital expenditure plans for about Rs. 3,500 crore during the next two to three years, for augmenting cement capacity by about 6 million tonnes.

The first phase of the thermal power plant at Ambujanagar in Gujarat was commissioned during the quarter, providing 30 MW of power generating capacity.

The company also commissioned its new one million tonne cement grinding unit at Farakka in West Bengal during the quarter.

The one million tonne cement grinding unit at Roorkee in Uttarakhand will be commissioned during the current quarter.

The work of upgradation on the cement plant at Rabriyawas in Rajasthan is progressing well and will also be commissioned during the current quarter. With this, the clinkering capacity at Rajasthan will increase from the current 1.5 million tonnes to 2 million tonnes annually.

Work is ongoing for the clinker expansion projects at Bhatapara and Rauri, and associated split grinding units. In addition, captive power projects at the plants in Rabriyawas, Ropar, and Maratha, which will deliver in total 178 MW of capacity, are currently at various stages of completion.

Considering the one-time, non-recurring income of the company and the improvement in operational results, the Board of Directors has, at its meeting held on July 20, 2007 approved an interim dividend comprising:

· Rs.1.30 per share of Rs.2 each as one-time, special interim dividend on account of non-recurring income earned by the company; and

· Rs.1.20 per share of Rs.2 each as interim dividend on account of operational performance.

Thus, the total interim dividend approved by the Board of Directors is Rs.2.50 per share of Rs.2 each.