As a result of higher price realisations, actual turnover at Rs 730.35 crore witnessed a growth of 70 per cent, compared to Rs 429.03 crore last year.
With a 115 per cent increase in operating profits, margins at the operational level improved from 27.68 per cent to 34.81 per cent.
Operating profit of the company remained the highest in the industry at Rs 830 a tonne. In contrast, ACC had an operating profit per tonne of Rs 422, while Birla Jute has a profit of Rs 310 per tonne.
However, profit margins at the net level have fallen from 23.42 per cent to 20.23 per cent mainly on account of lower other income, which dropped from 39.86 crore to Rs.8.18 crore.
The stock markets have reacted positively to these results, with the scrip price moving up by Rs 19 in two trading sessions.
As far as the current year is concerned, the revenues should continue to record impressive growth as the company is commissioning additional capacities during the year.
The company's 10-lakh-tonne cement plant is expected to commence by the end of December 1996. With this, the total cement capacity would go up to 45-lakh tonnes.
Since the industry as a whole has been witnessing a deluge of new capacities with companies like L&T, Grasim, Indian Rayon and Century Textiles commissioning the capacities during first half of 1996, price realisations in 1996-97 are not expected to be as high as in 1995-96.
However, these new capacities should not pose too much of a threat for Gujarat Ambuja Cements, as the company has a track record of being one of the most cost-efficient companies in the business.
