Ambuja Cements (500425) Q4 96/97 earnings summary

Executive summary

• FY ended 30 June 1997: sales Rs 92,137.31 lakh vs Rs 73,035.10 lakh; net profit Rs 13,238.36 lakh vs Rs 14,782.18 lakh.

• Challenging market conditions were met with a new 1 Mt plant, higher cement sales and record exports; profit before tax was Rs 13,549.36 lakh.

Financial highlights

• Operating profit before interest and depreciation was Rs 28,546.81 lakh vs Rs 26,244.91 lakh; interest was Rs 6,881.06 lakh vs Rs 5,484.56 lakh.

• Gross profit was Rs 21,665.75 lakh; depreciation Rs 8,116.39 lakh; tax provision Rs 311 lakh, including Rs 11 lakh wealth tax; net profit Rs 13,238.36 lakh.

• Equity dividend recommended at Rs 2.50/share final, following Rs 2.50/share interim; total Rs 5/share, unchanged YoY.

Outlook and guidance

• Captive power capacity was planned to rise from 30 MW to 82 MW by December 1997, targeting more than self-sufficient power generation at cement plants.

• Cement demand was expected to benefit from housing and construction; management anticipated improvement after economic slowdown and subdued cement prices.