Highlights of the call

• Company has achieved a turnover of Rs 1400 crore for the year ended March 07, a growth of 9%.

• Company is shifting its focus on maize processing and cotton yarn as both have EBITDA of 20%, compare to solvent, which has 5%.

• Maize processing industry is growing at the rate of 20% per annum. Company is setting up a new plant at Uttaranchal for maize processing, which is almost through. Production at Uttaranchal project will start by July end. At present, maize crushing is 500 tonnes per day. With this expansion, it will increase to 1200 tonnes per day. As a result, the total annual maize crushing is expected to go up at 2.6 lakh tonnes. The capital expenditure for this project was earlier expected to be around Rs 90 crore, but it stands reduced now to Rs 75 crore. Out of this, Rs. 38 crore has been already spent on expansion.

• Cotton yarn expansion is happening at Himmatnagar plant. Capacity to be added is 200 tonnes per day by June. Total capital expenditure for this project is Rs 72.5 crore, which is likely to be commissioned by September 2007. In the same Himmatnagar plant the company has already incurred capital expenditure of Rs 20 crore for expansion.

• At present, solvent extraction contributes 78% and maize processing & cotton yarn contribute remaining 22% to the turnover of the company. Post expansion, the share of solvent extraction will come down to 71% while that of maize processing & cotton yarn is set to increase to 29% of the turnover of the company.

• Company is expecting to earn 3000 to 3200 carbon credit from its windmill project, which has a value of Rs 25 lakh at present rate.

Net profit of Gujarat Ambuja Exports rose 72.73% to Rs 11.21 crore in the quarter ended March 2007 as against Rs 6.49 crore during the quarter ended March 2006. Net sales rose 1.12% to Rs 355.86 crore in the quarter ended March 2007 as against Rs 351.92 crore during the quarter ended March 2006.

For the full year, net profit rose 57.17% to Rs 46.38 crore for the year ended March 2007 as against Rs 29.51 crore during the year ended March 2006. Net sales rose 8.74% to Rs 1409.87 crore for the year ended March 2007 as against Rs 1296.60 crore during the year ended March 2006.

Guidance

• The company has given a guidance of about 35% growth in sales to Rs 1900 crore for FY 2007-08. During this period, its EBIDTA margins are likely to improve by 200 basis points (bps).

• Company is in process of setting up a maize processing and ethanol plant at Nasik. Capital expenditure for this project is expected to be at Rs 96 crore. This project is still under consideration, and it will start only after August 07.