Ambuja Cements (500425) Q4 97/98 earnings summary

Executive summary

• FY ended 30 June 1998 delivered record cement sales volumes above 5 million tonnes amid industry-wide oversupply, depressed prices and rising input costs; cost controls and market-share gains supported profitability.

• Sales rose to Rs 113,095.93 lakh from Rs 92,137.31 lakh, while net profit was Rs 13,166.28 lakh versus Rs 13,238.36 lakh YoY.

Financial highlights

• Revenue from sales was Rs 113,095.93 lakh versus Rs 92,137.31 lakh; operating profit before interest and depreciation was Rs 35,279.52 lakh versus Rs 28,546.81 lakh.

• PBT was Rs 13,653.28 lakh versus Rs 13,549.36 lakh; net profit after tax was Rs 13,166.28 lakh versus Rs 13,238.36 lakh.

• Equity dividend recommended at Rs 3.50/share final plus Rs 2.50/share interim, totaling Rs 6/share versus Rs 5/share in the prior year; preference dividend also recommended at 10% pro rata.

Outlook and guidance

• Housing and infrastructure initiatives were expected to support future cement demand, conditional on effective implementation; industry growth was expected to favor productivity, operational efficiency and low-cost producers.

• Ambuja Cement Eastern was expected to improve in coming years as production, capacity and operating efficiency were strengthened; no quantified output or earnings guidance was given.