GACL posts 90 pc rise in profit

The GACL board, which met in Mumbai on Thursday, has declared an interim dividend of 25 per cent for the current fiscal. During the last quarter, the company8217;s power cost per tonne dropped to 94 units, from 100 units last year. The consumption and landed cost of coal were also significantly lower during the last quarter.

The operating profit during the second quarter increased from Rs 88 crore to Rs 108 crore, while the same during the first six months shot up from Rs 161 crore to Rs 211 crore. The operating margins improved from 33 per cent to 38 per cent during the last quarter.

Gujarat Ambuja said cost reductions and operational efficiency helped the company to substantially increase its operating profit. The firm has benefited from higher cement prices in Gujarat and North India, its major markets, analysts said.

quot;Results have been positive due to higher prices in Gujarat compared to other states,quot; said an analyst. Cement prices in Gujarat rose 10-12 per cent over the year-ago quarter, analysts said. The firm was not affected by the competition-driven decline in prices seen in eastern India, as it does not have a direct presence there.