The company posted a net profit of Rs 1.33 crore to June 30, 1999 against a Rs 64.53 crore net loss in the previous fiscal. Its accumulated loss came down marginally to Rs 144.68 crore to June 30, 1999 as compared to Rs 146.01 crore in the previous fiscal.

The upswing in performance is being attributed to factors like improvement in productivity, quality of cement and reduction in costs and distribution.

Operations of the company was streamlined and capacity utilisation improved under the new management. The company had turned sick in the early nineties and was referred to the Board for Industrial & Financial Reconstruction, which approved a rehabilitation scheme in November1997.

Gujarat Ambuja Cements Ltd agreed to pump in Rs 166 crore as fresh equity while the existing share capital of Rs 45 crore was reduced by 75 per cent. It was also decided to broad-base the management of ACEL, which was implemented on December 9, 1997.

The directors in their report noted that the implementation of the rehabilitation scheme is on schedule. To fund the increased requirements in working capital, ACEL has approached a consortium of bankers headed by State Bank of India to enhance the working capital limits to Rs 50 crore.

The report pointed out that overall demand in the eastern region increased by two per cent, while its volume of sales doubled. ACEL, which sells its cement branded as "Ambuja Cement," has increased its market share in West Bengal, Bihar and Orissa.

The company increased its capacity by 35 million tonnes over the last four years, of which 9.2 million tonnes were added during the year to June 30, 1999.

The company improved its production by 10.57 lakh tonnes,recording a 115 per cent growth on an annualised basis.

During the year, the management took steps to cut down costs. The directors have noted that due to the efficient use of explosives and mining equipment, limestone lifting costs declined by 25 per cent. In addition to this, another 25 per cent was saved on power costs.