The Hindu Business Line : Guj Ambuja Exports may pay 20% this fiscal

Ahmedabad, Jan 1 With the market capitalisation of its equity shares crossing the Rs 1,000-crore mark on November 30 and turnover expected to cross the Rs 1,900-crore mark this fiscal, agro-processing major Gujarat Ambuja Exports Ltd (GAEL) is considering to pay 20 per cent dividend to shareholders.

“We will be paying 15 per cent interim dividend as decided and take a final decision to pay the balance five per cent at our board’s meeting on January 22,” Mr Vijay Gupta, Chairman and Managing Director, told Business Line here.

The company’s fiscal is likely to end with a PAT of nearly Rs 97 crore, on a projected turnover of Rs 1,903 crore. About the company’s plans of diversification to new businesses and countries in 2008, he said GAEL is talking to the respective parties and finalising these plans at present. The company would fund its new plans mainly from its internal accruals. “We generate Rs 150 crore in cash every year.”

The company is also planning to link 40 “mandis” in Rajasthan, Madhya Pradesh and Maharashtra on the ITC’s e-Choupal model to procure oilseeds and other products directly from farmers, in what is likely to emerge as a new business model of an interface between commodity exchanges and farmers.

Its equity share buyback programme, started in April 2006, will close on January 15. In April 2006, when the share prices were around Rs 25, the company announced buyback with the cap of Rs 38 per share. The company has so far bought nearly 10 lakh shares, thereby reducing the equity from Rs 27.86 crore to Rs 27.68 crore.

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