The Hindu Business Line : Ambuja Cement net down 21 pc

Mumbai, Feb. 6 Ambuja Cement on Friday reported a drop of 21 per cent in net profit at Rs 1,402 crore in the year ended December 2008, against Rs 1,769 crore recorded the previous year.

Sales grew 11 per cent to Rs 6,235 crore (Rs 5,631 crore), while the production increased 5 per cent to 17.6 million tonnes (16.8 million tonnes).

The company’s total expenditure rose 23 per cent to Rs 4,716 crore (Rs 3,823 crore) as power and fuel costs jumped 30 per cent to Rs 1,326 crore (Rs 1,020 crore) and freight expenses were up 12 per cent to Rs 1,220 crore (Rs 1,090 crore).

Mr A.L. Kapur, Managing Director, Ambuja Cement, said “The bulk of the rise in power and fuel cost was due to the spike in coal prices, as captive power accounts for 80 per cent of our total requirement expect in Himachal Pradesh where we buy from the grid.”

His term, which expires on April 30, has been extended by a year.

The consolidated net profit increased 25 per cent to Rs 1,390 crore (Rs 1,846 crore) in the year under review. And total income soared to Rs 6,437 crore (Rs 5,991 crore).

Final dividend

The board of directors has recommended a final dividend of Re 1 per share and the total dividend for the year works out to Rs 2.20 a share (110 per cent).

The company has commissioned a grinding unit of 1.2 million tonnes at the ACL terminal at Surat in Gujarat.

A captive power plant of 18.7 MW will be completed at Rabriyawas plant in Rajasthan.

Additional power plants at Ambujanagar, Bhatapara and Chandrapur will add another 90 MW

The ongoing projects at Bhatapara in Chhattisgarh and Rauri in Himachal Pradesh, to add 4.4 million of clinker capacity, are slated for completion by end-2009.

The bulk cement terminal at Kochi is to be commissioned in the first quarter of 2009. In the next two years, the company plans to acquire three new vessels to strengthen its fleet of ships.

Cautiously optimistic on the prospects in 2009, Mr Kapur said, quality and supply of coal continue to be a concern.

The company's share price on the BSE was down 2 per cent at Rs 71 on Friday.

Related Stories:
Fuel, power costs hit Ambuja Cements Q2 net
Ambuja Cement output up in Aug

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