Ambuja Cements (500425) Q4 00/01 earnings summary

Executive summary

• FY2000-01 operating profit rose 17% to Rs.463 crore and profit after tax excluding extraordinary income increased to Rs.185 crore from Rs.175 crore, despite declining industry demand.

• Efficiency, stronger sales realisation and logistics supported results; cement production rose 5% to 6.10 million tonnes and sales volume increased 2% to 6.11 million tonnes.

Financial highlights

• Sales were Rs.1,447.85 crore versus Rs.1,302.50 crore; profit before tax and extraordinary income was Rs.199.39 crore versus Rs.174.57 crore.

• Profit after tax was Rs.186.35 crore, versus Rs.428.17 crore in the prior year, which included Rs.281.60 crore profit on investment sales before tax; prior-year extraordinary income net of tax was Rs.254 crore.

• Interest expense rose to Rs.134.08 crore from Rs.98.71 crore, while depreciation was Rs.129.30 crore versus Rs.123.89 crore.

• Average sales realisation improved about 9% YoY; sales value rose 11% to Rs.1,447.85 crore.

Outlook and guidance

• FY2001-02 cement demand growth was expected at 6–8%, following 2% growth in the first three months; housing, infrastructure, employment projects and a favourable monsoon were cited as demand drivers.

• The 2-million-tonne Chandrapur plant, with 40 MW captive power, was targeted for commissioning in December 2001; installed capacity was expected to rise from 7 million to 9 million tonnes.

• Including Ambuja Cement Rajasthan and Ambuja Cement Eastern, group capacity was projected at 12.5 million tonnes.

• Bathinda's prepared second-phase 0.5-million-tonne grinding capacity would proceed when demand justified construction and equipment orders.