Gujarat Ambuja Q4 net soars 110 per cent

As expected, Gujarat Ambuja Cements has reported stellar results for the fourth quarter ended 30 June, 2006. The company retains its position as the most efficient and profitable cement company in the country with a substantial jump in operating margins, helped by better realisations.

Consolidated net profits for the quarter have jumped 110.35 per cent to Rs360.07 crore from Rs171.18 crore for the previous year quarter. Consolidated net sales revenues were higher by 56.13 per cent at Rs1,154.57 crore as against Rs739.5 crore for the prior year quarter.

Operating profits for the quarter increased 99.83 per cent while operating margins as a percentage of net sales have expanded nearly 840 basis points. Operating margins for the quarter was 38.38 per cent as compared to 29.98 per cent for the previous year quarter.

The company managed its input and production costs very well by limiting the rise to only 23.81 per cent. The Supreme Court order on overloading of trucks has impacted transportation costs, which went up by 62.47 per cent for the quarter. Staff costs increased 36.1 per cent while other operating expenses increased 27.32 per cent.

Interest costs nearly halved during the quarter while depreciation charges went up by 20 per cent.

Share of profits from associate companies went up substantially to Rs56.5 crore from Rs17.51 crore for the prior year quarter. The company has reported an exchange loss of Rs18.51 crore for the quarter.