The Hindu : Business : 1:2 bonus from Gujarat Ambuja

Online edition of India's National Newspaper
Thursday, Apr 21, 2005

Business

Business

1:2 bonus from Gujarat Ambuja

Staff Correspondent

Recommends 60 p.c. interim

MUMBAI: Gujarat Ambuja Cements Ltd. (GACL) announced a net profit of Rs. 147 crores for the third quarter ended March 2005, in spite of a 26 per cent increase in power and fuel costs, a jump of 24 per cent over the corresponding period of the previous year. The company has attributed the increase to all round improvement in productivity and efficiencies of operations. The turnover was up 19 per cent at Rs. 667.42 crores against Rs. 559.29 crores and sales realisation was up only around 4 per cent. The company sold 3.18 million tonnes of cement (2.77 million tonnes). The operating profit is Rs. 207.57 crores (Rs. 215.61 crores).Interest expense is up at Rs. 20.79 crores (Rs. 18.92 crores); depreciation Rs. 49.22 crores (Rs. 41.16 crores) and tax Rs. 5.55 crores (Rs. 10.30 crores).

The directors have proposed to issue bonus shares in the ratio of one share for every two shares held (1:2) by capitalising reserves. The board also announced an interim dividend 60 per cent for the year ending June 2005.

In order to provide greater liquidity to the company's shares, the directors have proposed to split the face value of the existing equity shares from Rs. 10 to Rs. 2 per share.

For the nine months ended March 2005, the company reported a net profit of Rs. 323.12 crores (Rs. 219.60 crores) on a net sales of Rs. 1,886.63 crores (Rs. 1,372.90 crores).

On the industry prospects, Anil Singhvi, Executive Director, said, "We are witnessing good construction growth and it is expected that it will continue in the current year as well.

On the base demand of 125 million tonnes (2004-05), it is expected that demand would grow by 8 per cent for (2005-06) with stable to firm cement prices."

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