Net sales for the quarter increased by 3.29 per cent to Rs 251 crore as against Rs 243 crore for the same period last year. Other income has fallen from Rs 6.94 crore in September 1999 to Rs 3.65 crore in the current quarter.

The company's gross sales stood at Rs 290.26 crore as against Rs 280.95 for the same quarter last year. Interest costs stood at Rs 32 crore as against Rs 22 crore.

Analysts tracking the sector had predicted that Gujarat Ambuja's bottomline will be hit, but a drop of 50 per cent was beyond all conservative estimates. Industry analysts say that interest costs had increased dramatically by over 50 per cent. ``It seems that Ambuja had to pay heavily for the loans for acquiring the 14 per cent stake in the ACC pie,'' an analyst says.

Gujarat Ambuja has sold 13 lakh tonne of cement and clinker as against 11.97 lakh tonne for the corresponding quarter last year.

Cement prices have been down for quite some time. Realisations have been low and so operating margins have also been low. The two month drought in Gujarat and the consequent ban in construction activity has hit Gujarat Ambuja hard as nearly 40 per cent of the company's sales come from Gujarat.

The Gujarat Ambuja scrip opened at Rs 141.45 and closed at Rs 140.45 (a fall of 0.71 per cent) on Friday at the Bombay Stock Exchange. Analysts feel that since the negative factors have already been factored in, the Ambuja scrip may not see a drastic fall in the coming days. It may, however, see a decline.