The Hindu Business Line : Guj Ambuja Q4 net up 49.5 pc

IMPROVED price realisation and cost efficiencies have helped Gujarat Ambuja Cements report a 49.5 per cent increase in net profit, year-on-year, for the its fourth quarter ended June 30, 2004.

Net profit for the quarter amounted to Rs 117.2 crore as against Rs 78.37 crore reported for the corresponding quarter of the previous year.

This is despite a provisioning of Rs 27.17 crore on account of foreign exchange fluctuations, said Mr Anil Singhvi, whole-time director of the company.

Net sales rose 26 per cent to Rs 595 crore (Rs 470.6 crore). Total expenditure increased only 19.3 per cent, to Rs 404.35 crore (Rs 338.82 crore).

Operating profit increased 29 per cent to Rs 117 crore, up from Rs 78 crore.

The results include the performance of Ambuja Cement Eastern Rajasthan which was merged with Gujarat Ambuja on June 1, 2004.

For the fiscal ended June 30, 2004, Gujarat Ambuja has reported a 52 per cent increase in net profit, which amounted to Rs 336.79 crore (Rs 222.1 crore).

Although sales volumes grew only 6 per cent price realisation moved up 12 per cent between June 30 of last year and this year. Net sales rose 13 per cent, to Rs 1,968 crore (Rs 1,742 crore), while total expenditure too rose 13 per cent to Rs 1,431 crore (Rs 1,265.7 crore). Operating profit rose 14.5 per cent.

Interest costs were lower at Rs 78.43 crore (Rs 87.94 crore) with depreciation amounting to Rs 168.6 crore (Rs 171.3 crore).

The company has announced a dividend of 80 per cent for the year; this includes the interim dividend of 50 per cent announced earlier.

The cement industry witnessed slow growth during the last fiscal in question, growing at only 5.6 per cent, said Mr Singhvi. It is expected that due to increased impetus to the development of rural and urban infrastructure and robust growth in the housing sector, demand for cement may rise to about 6 per cent during the current year. This growth, albeit low, will help in reducing the imbalance of demand supply and lead to stable cement prices, he said.