GACL net profit up 478% in Q2

The company, however, said in a statement that the figures for the current quarter are not comparable with the corresponding quarter for the previous year. This is because its 49 per cent arm, Ambuja Cement Rajasthan, merged with GACL in June 2004.

The major chunk of GACL’s revenues come from the markets in the north at 45 per cent, followed by 30 per cent accounted for by the west and 5 per cent from the east. About 20 per cent of the revenues come from exports.

Analysts said the company’s good results were chiefly due to a better standalone performance by GACL, which were also aided by a robust showing by the new Rajasthan division (formerly Ambuja Cement Rajasthan).

Analysts were divided on twin issues of whether GACL’s performance is sustainable and whether it pointed to a similar performance by other cement companies. A senior analyst at a Mumbai-based brokerage house said other cement companies too could reflect GACL’s performance.