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PRESS
RELEASE
22
April 2008
UltraTech
announces financial results for the quarter and year ended
31 March 2008
Click
here to view the results
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Rs.
crore
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Q4FY08
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Q4FY07
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FY08
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FY07
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Net
sales
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1,602
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1,465
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5,509
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4,911
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PBIDT
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516
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428
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1,820
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1,479
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Gross
profit
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283
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232
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1,008
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782
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UltraTech
Cement Limited, an Aditya Birla Group Company today announced
its financial results for the quarter and year ended 31 March
2008.
Financials
– Q4FY08
For the quarter ended 31 March 2008, the company achieved net
revenues of Rs.1,602 crore (Rs.1,465 crore). After providing
for interest of Rs. 19 crore (Rs. 20 crore), depreciation of
Rs. 65 crore (Rs. 60 crore) and tax of Rs. 148 crore (Rs.116
crore), the profit after tax stood at Rs. 283 crore (Rs.232
crore).
The company
produced 4.22 mmt of cement (4.17 mmt). Effective capacity
utilisation at 113 per cent was on par with the corresponding
period of the previous year.
Domestic
sales volume grew by 4 per cent from 3.86 mmt to 4.03 mmt
in Q4FY08, by curtailing exports to cater to the rising domestic
demand.
Increase
in prices of coal, fly-ash, iron ore and petro products resulted
in variable costs rising sharply by 12 per cent compared to
Q4FY07. Imported coal prices at US$150 pmt (US$74pmt), more
than doubled during the quarter. Sequentially too, QoQ witnessed
sharp increase in variable costs of over 10 per cent, while
realisation remained flat, thereby resulting in continuous
pressure on margins.
Financials
– FY08
For the year ended 31 March 2008 the company achieved net revenues
of Rs.5,509 crore (Rs.4,911 crore). After providing for Interest
of Rs.76 crore (Rs.87 crore), depreciation of Rs.237 crore (Rs.226
crore) and tax of Rs.499 crore (Rs.384 crore), the profit after
tax stood at Rs.1,008 crore (Rs.782 crore).
During
the year the company produced 15.07 mmt of cement (14.64 mmt).
Effective capacity utilisation remained flat at 101 per cent.
Variable
cost increased by over 8 per cent during FY08 mainly on account
of escalation in the cost of raw materials, mounting freight
charges and the cost of imported coal.
The recent
ban on exports imposed by the government will have an impact
on export revenues. However, the company plans to increase
its domestic volume to mitigate the impact.
Dividend
The board of directors have at their meeting held today, recommended
a dividend of 50 per cent, aggregating to Rs. 62.24 crore. The
company will absorb the corporate tax on dividend amounting
to Rs. 10.58 crore, leading to a total payout of Rs. 72.82 crore.
Capex
Clinkerisation (Pyrosection) unit at the company’s unit
in Andhra Pradesh (APCW) was commissioned in Q4FY08. Remaining
work pertaining to capacity expansion at APCW and the split
grinding unit at Ginigera in Karnataka is in progress. The unit
will be operational in H1FY09. Continuous de-bottlenecking efforts
across the company’s units resulted in capacity increasing
by 1.2 mmt during the year. Upon commissioning of expanded capacity
at APCW, the company’s total capacity will be 23.1 mmt.
Trials have begun on the first stream of the Thermal Power Plant
(TPP) of 23mw at the unit in Gujarat (GCW). All four streams
aggregating to 92mw will be fully operational in H1FY09. The
project work at the other TPP’s aggregating to 100mw being
set up at the company’s units in Andhra Pradesh and Chattisgarh
are in full swing. These will be commissioned during H1FY09.
15 ready
mix concrete plants have been set up in FY08 across the country.
Recognising the opportunities that this business offers, the
company is focussed on setting up additional ready mix concrete
plants.
Outlook
Overall, demand is expected to grow by 9 per cent. The industry
will inevitably experience a surplus of supply over demand on
account of additional capacity of 118 mmt, during the XIth plan
period which is expected to have an impact on domestic prices
in CY09. Continuous government intervention has resulted in
uncertain price environment, which together with significant
increase in input costs will have an adverse impact on margins.
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