The Hindu Business Line : Ambuja Cements full year net logs 32% growth

Mumbai, Feb. 1 Ambuja Cements Ltd has posted a 32 per cent rise in net profit at Rs 1,769 crore for the year ended December 31, 2007, against Rs 1,340 crore logged for same period last year.

Total income rose 19 per cent to Rs 5,898 crore as against Rs 4,948 crore in December 31, 2006.

To pay Re 1 final

The board of directors has recommended a final dividend of Re 1 per share.

With the interim dividend of 125 per cent paid during the year, the total dividend for 2007 works out to Rs 3.50 per share. On a consolidated basis, the group’s net profit was up 29 per cent at Rs 1,846 crore (Rs 1,435 crore) for the year ended December 31, 2007.

Total income has increased to Rs 6,064 crore (Rs 5,143 crore) for the same period.

‘Fundamentals strong’

“Although growth may moderate in the short term, macro-economic fundamentals are sound and the outlook for the Indian economy remains bright. This reflects in the company’s current and planned capital investments,” Mr A.L. Kapur, Managing Director, said in a press release.

Driven by higher dispatches and improved realisation, net sales for the year ended December 2007 jumped 18 per cent to Rs 5,705 crore against Rs 4,854 crore logged in the same period last year.

During the year, the company has realised an exception income of Rs 815 crore before tax from sale of shareholding in an associate company and through disposal of property.

Sri Lanka impact

Due to adverse market conditions in Sri Lanka and depreciation in local currency, the company’s subsidiary, Ceylon Ambuja Cements, has incurred continuing operating losses and its net worth eroded substantially. Accordingly, the company recognised a provision for diminution in value of investment of Rs 29 crore.

“Feasibility studies are in progress for new capital projects totalling about Rs 3,000 crore, to be implemented over the next 3 to 5 years. Major infrastructure development projects, as well as residential housing, will continue to support robust growth in cement demand,” said Mr Kapur.

On Friday, the company’s stock on BSE closed flat at Rs 119.

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