Even as the the company recorded a modest 6.2 per cent growth in volumes and an even lower 2.6 per cent rise in sales turnover, the company's net profit shot up to Rs 46.4 crore, from Rs 32.4 crore in the corresponding period last year. Operating margins were higher at 37.6 per cent, against 33.5 per cent in the third quarter last year. Buoyed by a drastic reduction in costs, the operating profit increased 14.4 per cent to Rs 104 crore during January-March, while profit before tax zoomed 36.8 per cent from Rs 34 crore to Rs 46.5 crore.

"We are delighted to have recorded phenomenal growth in profits in a difficult period. The company is looking at various options to expand its cement capacity, which include acquisition of cement plants and setting up a new capacity," saidGujarat Ambuja's treasurer Anil Singhvi. For the nine-month period ended March 31, 1999, the company recorded a 4.9 per cent rise in net profit to Rs 92.7 crore. The profit before tax during the period rose by a modest Rs 1 crore to Rs 93.3 crore.

Sales turnover during the third quarter at Rs 327.9 crore increased 2.6 per cent over the same quarter last year, while net sales inched up 1.8 per cent to 276.4 crore. In volume terms, the third-quarter sales stood at 1.5 million tonnes, up from 1.45 million tonnes in the same period last year. Cumulative sales in the first nine months of the current fiscal stood at 4.21 million tonnes, against 3.75 million tonnes in the same period last year. The sales turnover during the first three quarters increased to Rs 881.58 crore, from Rs 843.78 crore the last fiscal. During the third quarter, Gujarat Ambuja brought down its interest charges to Rs 26.5 crore, from Rs 28.5 crore last year.

The provision for depreciation, however, increased to Rs 31 crore, up from Rs28.4 crore in the third quarter last year. The company has provided Rs 1 crore for tax during the third quarter.

Birla Corp CEO to join Gujarat Ambuja board

Gujarat Ambuja Cements has roped in Birla Corp president and chief execitive officer AL Kapoor as a wholetime director. Kapoor, ex-president of the Cement Manufacturers' Association, is a veteran in cement and has also worked as a director in ACC. "I am delighted that AL Kapoor, a senior professional with vast experience, has joined our company. His joining will give a further boost to our growth plans," said Gujarat Ambuja's promoter and managing director NS Sekhsaria.