Ambuja Cement declares Standalone Results for Quarter ended 30th. June 2010

Ambuja Cements Ltd (ACL) today announced that production of cement for
the quarter ended 30th.

June went up by 12.7%, to 5.5 million tonnes, compared to 4.9 million
tonnes for the same quarter last
year.

Domestic sales volumes increased by 12.6%, from 4.6 million tonnes to
5.2 million tonnes. Exports
were 161 thousand tonnes compared to 219 thousand tonnes last year, a
decline of 26%. Net sales
increased by 10.8%, to reach Rs. 2,048 crore, as a result of the higher volumes.
Clinker purchases were minimal, following the commissioning in the
previous quarter of two new kiln
lines, and consequently EBITDA for the current quarter improved by
23.6% year on year, from Rs. 521
crore to Rs. 644 crore.

Profit before tax and exceptional items increased by 18.7%, to Rs. 562 crore.

The Board of Directors has decided to declare an interim dividend of
Rs. 1.20 per share (60%).

Highlights of Quarter ended 30th. June 2010

Cement demand growth moderated during the quarter, registering 6.4%
year on year, mainly as a result
of a slowdown in key housing and infrastructure sectors. The East and
North regions remained fairly
robust, while demand softened to some extent in South and West. Export
markets remained sluggish.

Clinker purchases ceased during the quarter, following commissioning
of the new clinkerisation units.
The consequent reduction in raw material costs contributed
significantly to the EBITDA improvement.

Fuel and power costs increased 21% year on year, mainly as a result of
the increased production
volumes. Imported coal costs remained lower than in the same quarter
last year. However, domestic
coal costs, as well as petcoke costs, have been increasing.

Surplus power continued to be sold into the market, generating
approximately Rs. 15 crore of revenue
in the quarter (last year Rs. 19 crore), which is reported under
‘other operating income’.

Freight and forwarding expenses increased 33% year on year, impacted
by higher sales volumes,
increased internal material transfers, and diesel price increases.

Projects

During the quarter, a 30 MW thermal power plant was commissioned at
the Ambujanagar
manufacturing unit in Gujarat.

Outlook

Cement demand growth began to slow in the month of June, and is
expected to remain subdued
through the monsoon season. By the third quarter, activity should pick
up again, and the medium term
demand outlook remains positive.

Onne van der Weijde
Managing Director
Mumbai, 22nd. July 2010