Guj Ambuja results: extraordinary income to the rescue
Gujarat Ambuja Cements Limited (GACL) recorded an 8.7% jump in its net profit for the third quarter ended March 31, 2000. It turnover during the period improved marginally by around 1%.
The company's earnings however surged a whopping 491% aided by an extraordinary income of Rs 2.2 bn, which were realised on account of sale of shares of a group company Ambuja Cement Eastern Ltd.
If we don't consider the extraordinary income, the performance of GACL is nothing to cheer about. Given the current surge in cement demand, these results do not do justice to the company's operating performance.
Operating Profit (EBDIT)
Operating Profit Margin (%)
PAT (incl. extraordinary income)
Net profit margin (%) (actual)
In the third quarter the company actually sold lesser quantity of cement compared to 3QFY99. GACL sold 1.53 m tonnes of cement in 3QFY2000 as compared to 1.54 m tonnes in 3QFY99.
Because of the extraordinary income even its 9 months consolidated earnings have jumped to Rs 3.8 bn. Turnover was up 7% to Rs 9.4 bn during the period.
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