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Gujarat Ambuja Q1 net up 195 pc to Rs 500 million, declares 1:1 bonus

The board of directors of Gujarat Ambuja Cements Limited have proposed an issuance of bonus shares in the ratio of 1:1 by way of capitalisation of reserve, according to a company statement.

The company net profit for the quarter ended September 30, 1999 jumped up by 194 per cent to Rs 500.5 million against Rs 170.2 million in the first quarter of the previous year.

Despite the cement prices remaining at the same level at which they were two years ago, the company's "impressive performance" was due to the all-round cost reduction and improvement in productivity during the first quarter, the company has claimed.

The operating profit per tonne of cement during the period was Rs 861 as against Rs 624 per tonne in the corresponding period of the previous year.

During the first quarter, the company has sold 1.2 million tonnes of cement against 1.17 million tonnes in the first quarter of the previous year.

The turnover is up from Rs 2.41 billion to Rs 2.80 billion, an increase of 16 per cent. The operating profit has taken a quantum jump to Rs 1.03 billion as against Rs 729.5 million, an increase of 41 per cent.

After providing for lower interet of Rs 223.4 million as against Rs 276.9 million and depreciation of Rs 306.4 million (Rs 282.4 million), the net profit after tax has gone up about three times to Rs 500.5 million as against Rs 170.2 million.

Sales for July-September 1999 were Rs 2.43 billion, up 20 per cent from Rs 2.03 billion a year ago.

The company expects the growth tempo that started earlier this year to continue. It is expected that the growth in demand for cement during the year will be over 15 per cent.

UNI

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