Gujarat Ambuja net up

Gujarat Ambuja net up
30 July 2004

Buoyed by higher cement prices, Gujarat Ambuja Cements Ltd (GACL), the fourth-largest cement producer, has posted a 50% jump in net profit for the fourth quarter ended June 30 to Rs 117.2 crore, up from Rs 78.4 crore in the corresponding period last year.

Net sales turnover surged 26% from Rs 470.6 crore to Rs 595.1 crore.  Operating profit shot up 29% to Rs 183.9 crore while profit before tax rose from Rs 81.3 crore to Rs 120 crore. During the three-month period, the company made a provision of Rs 27 crore (against a credit of Rs 7 crore in the previous year) on account of foreign currency rate difference on outstanding loans.

According to GACL’s whole-time director Anil Singhvi, the company expects 20% volume growth in the current fiscal resulting from its merger with ACRL. "The full impact of the merger will be visible only in the current fiscal as we expect our cement volumes to touch around 12.5Mt," he said.  "Cement prices were better and this had a positive impact on our performance, especially during the third and fourth quarters," he added.

Published under Cement News