Mumbai: Gujarat Ambuja Cements (GACL) has performed well during the first quarter of the current financial year. During the first quarter (July-September 2002), the company produced 2.08 million tonnes of cement as against 1.47 million tonnes in the corresponding quarter of the previous year — an increase of 41 per cent.

GACL sold 2.14 million tonnes during the current quarter as against 1.46 million tonnes — an increase of around 47 per cent. The turnover is up 28 per cent to Rs 434.03 crore during the quarter as compared to Rs 340.08 crore during the corresponding quarter of the previous year, says GACL whole-time director Anil Singhvi.

The sales realisation was lower by 16 per cent as compared to the corresponding quarter of the previous year. Despite such low sales realisation, high productivity and further lowering of costs during the quarter helped the company to earn an operating profit of Rs 89.47 crore as against Rs 114.43 crore in the corresponding quarter of the previous year.

Due to better management of interest costs, the interest burden during the quarter has come down to Rs 22.02 crore as against Rs 24.67 crore in the corresponding quarter of the previous year.

After providing depreciation of Rs 43.40 crore (Rs 33.53 crore), the profit before tax is Rs 24.05 crore as against Rs 56.23 crore as compared to the corresponding quarter of the previous year. The profit after tax is Rs 17.65 crore as against Rs 47.33 crore in the corresponding quarter of the previous year after providing a tax (including deferred tax) of Rs 6.40 crore (Rs 8.90 crore).

During the first half of the current fiscal year, the cement demand has grown by about 10 per cent. The cement demand supply scenario is looking distinctly balanced with no new greenfield capacity expected during the current fiscal year and also for the next two years. Cement prices, which had reached an all-time low during the quarter July-September 2002, have started moving up and are likely to improve further.