AMBUJA CEMENTS LTD = RESULTS = FOR 2010 ,2009,2008 COMPARED = SALES UP4.43%; NET PROFIT UP 3.79%

Ambuja Cements Limited

NSE Symbol AMBUJACEM

Ambuja Cements has declared its results for the Calendar  year 2010. The consolidated results for CY 2010 are compared below with 2009 and 2008.

Net Sales is Rs.7390.21 cr – up by 4.43% from CY 2009 and by 18.02% from CY 2008.

Total Expenditure is Rs.5954.39 cr – up by 8.09% from CY 2009 and by 25.35% from CY 2008.

Profit from Operations is Rs.1563.16 cr – down by 6.57% from CY 2009 and up by 1.06% from CY 2008.

Consolidated Net Profit is Rs.1262.97 cr – up by   3.79% from CY 2009 but down by 9.12% from CY 2008.

Thus, there has not been any significant improvement in either sales or profitability over the years. Lower Tax expense has boosted the net profits slightly this year.

Basic EPS (in Rs.) is Rs.8.28 – against Rs.7.99 in CY 2009 and Rs.9.13 in CY 2008.

As per its media release,  its sales volume in 2010 was 20 m.tonnes, against 18.8 m.tonnes in CY 2009, reflecting a growth of 6.4%

Costs of Major Inputs (Power and fuel) has increased during the year.

After 1^st quarter, interest rates rose, stimulus measures were partially rolled back; early onset of monsoons and floods all had a negative impact.

In 2010, Ambuja has also commissioned huge additional capacities and expects to add 2 m tones more in 2011.

The Board has declared a total dividend of Rs.2.60 per share (130%) for the full year.

On a consolidated Basis, the results are lack lustre. But, compared to many other cement companies, Ambuja cements can be said to have fared better. The stand alone results are also approximately on the same lines, as can be seen from the Announcements section below.

The problem of Cement Industry is one of excess capacity  and increasing input costs right now. Most companies are building additional capacities even now – despite the existing excess capacity.

Budget has provided good incentives to infrastructure sector and also to building Industry. This is good for cement Industry also.

Yet, unless the excess capacity is matched by higher demand, and lower input costs, profitability may continue at current levels.

Consolidated results Table :

AMBUJACEM-CONSOL	CY10	CY 09	CY 08
Net Sales	739021	707687	626179
Net Sales	739021	4.43	18.02
Other Oprtg Income	12734	10461	3536
Incr./Decr. in SIT /WIP	-5428	4947	-6432
Raw Materials	229362	238718	193707
Traded goods	-	-	1153
Employees Cost	34367	27284	26682
Depreciation	38721	29728	26010
Other Expenditure	298417	250171	233919
Total Expenditure	595439	550848	475039
Total Expenditure	595439	8.09	25.35
Profit from Operations	156316	167300	154676
Profit from Operations	156316	-6.57	1.06
Other Income	12023	15120	14017
Profit before I & EI	168339	182420	168693
Interest	4869	2243	3260
Profit after I BB EI	163470	180177	165433
Exceptional items	-2653	-	-30331
Profit before tax	166123	180177	195764
Tax Expense	39826	58493	56793
Consolidated Net Profit	126297	121684	138971
Consolidated Net Profit	126297	3.79	-9.12
Face Value (in Rs.)	2	2	2
Paid-up Equity	30597	30474	30452
Reserves	701915	616292	536654
Basic EPS (in Rs.)	8.28	7.99	9.13
Diluted EPS (in Rs.)	8.26	7.98	9.12
Public Shareholding (%)	53	52	50

ANNOUNCEMENTS

TO THE NSE

03-02-2011             Ambuja Cements Limited has informed the Exchange regarding the standalone Results for the year ended on 31-DEC-2010 as follows: Net Sales of Rs. 739021 lacs for year ending on 31-DEC-2010 against Rs. 707687 lacs for the year ending on 31-DEC-2009. Net Profit / (Loss) of Rs. 126361 lacs for the year ending on 31-DEC-2010 against Rs. 121837 lacs for the year ending on 31-DEC-2009.            

03-02-2011             Ambuja Cements Limited has informed the Exchange regarding the consolidated Results for the year ended on 31-DEC-2010 as follows: Net Sales of Rs. 739021 lacs for year ending on 31-DEC-2010 against Rs. 707687 lacs for the year ending on 31-DEC-2009. Net Profit / (Loss) of Rs. 126297 lacs for the year ending on 31-DEC-2010 against Rs. 121684 lacs for the year ending on 31-DEC-2009.

09-11-2010             News Verification : The media had reports that Ambuja Cements Limited may merge itself with ACC Ltd. The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the officials of the company. Ambuja Cements Limited has vide its letter inter-alia stated, "We would like to inform you that we do not have any such proposal."

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