The Hindu Business Line : Gujarat Ambuja Exports net rises 53%

Ahmedabad April 18 Gujarat Ambuja Exports Ltd (GAEL), an agro processing company, has recorded a 53 per cent increase in net profit at Rs 46.38 crore during fiscal 2007 compared to last year's Rs 30.31 crore; the company also registered its highest export earnings since inception.

The company, which has 17 manufacturing plants including two in Gujarat and is engaged in maize processing, oil extraction, edible oil refining and cotton spinning, improved its top line to Rs 1,410 crore from Rs 1,293 crore in 2005-2006, a company release stated.

Export earnings rose to Rs 540 crore (Rs 412 crore). The f.o.b. value of exports rose 32 per cent to Rs 512 crore (Rs 389 crore). With this export performance, GAEL is likely to be ranked a three-star trading house, the release said.

The operating profit before interest, depreciation and taxation (EBITDA) rose 36 per cent to Rs 104.2 crore from Rs 76.69 crore last year. Cash profit after interest increased 38 per cent to Rs 95.61 crore (Rs 69.26 crore). EPS was Rs 3.33 as against Rs 2.18 last year on Rs 2 share.

Q4 results

The contribution of maize processing and cotton yarn divisions, which have better EBITDA margins, increased 28 per cent from a combined top-line of Rs 231 crore last year to Rs 297 crore this year. The company registered its highest level of crushing for oilseeds and maize at 5,07,560 tonnes and 1,04,884 tonnes respectively. Its yarn spinning at 19,983 tonnes was also the highest.

Top line of the fourth quarter ending March 31, 2007 stood at Rs 356 crore compared to Rs 352 crore in the corresponding quarter last year. However, due to the change in the composition of top line where EBITA margins were higher, the profit before tax has increased substantially from Rs 9.87 crore to Rs 15.97 crore, an increase of nearly 62 per cent. Net profit after provisions of the company was Rs 11.21 crore as against Rs 6.49 crore, an increase of 73 per cent.

EPS for the quarter was 80 paise (47 paise) on a Rs 2 share.

The company had announced a buyback scheme through the open market under stock exchange mechanism. The scheme is open from April 16, 2007 to January 15, 2008. The company has also received a SEBI order exempting the buyback scheme from the takeover code.

Under the buyback scheme the company is authorised to buy back shares worth Rs 26.25 crore at a maximum price of Rs 38 per share.

The company's greenfield maize processing plant at Uttaranchal is in the final stages and expected to go on stream by July 3. Work was delayed due to delayed arrival of imported machinery. However, the new cotton-yarn spinning project is on schedule. The unit with spindle capacity of 74,160 is expected to be ready by September this year.

GAEL has a 100 per cent wholly owned subsidiary in Singapore, branches at Vietnam, and associates in Malaysia, Indonesia, South Korea and Japan.