Gujarat Ambuja Q1 profit soars 510%

BS 200 SCORECARD

Gujarat Ambuja Cement's net profit for the quarter ended September 30, 2004, has zoomed up 510 per cent at Rs 90.46 crore, against a net profit of Rs 14.82 crore, recorded in the corresponding quarter of the previous year.

The company's net sales for the quarter stood at Rs 599.38 crore, against net sales of Rs 378.11 crore in the corresponding period of the previous year.

Anil Singhvi, executive director, Gujarat Ambuja, said, "There has been a 30 per cent increase in volumes due to the inclusion of Ambuja Cement Rajasthan. However, domestic as well as export realisations were significantly higher leading to improved results."

The company's operating margins grew by 50 per cent to stand at 30 per cent, against 20 per cent in the corresponding quarter of the previous year.

The company's export volumes were up by 33 per cent at 5.22 lakh tonne, while export realisations increased by almost 22 per cent during the quarter.

A cement analyst said, "Domestic demand remained firm in Gujarat Ambuja's primary markets in the northern and western regions, resulting in higher volumes for the company."

The company's interest payments increased by 7.62 per cent at Rs 21.02 crore, compared with Rs 19.53 crore, while depreciation costs went up 23.1 per cent at Rs 50.27 crore, against Rs 40.82 crore in the corresponding period of the previous year.

The company recorded a 137.86 per cent jump in its operating profit at Rs 179.35 crore, against Rs 75.40 crore in the corresponding quarter of the previous year.