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PRESS
RELEASE
18
October
2008
UltraTech
reports results for the quarter ended 30 September 2008
Click
here to view the results
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(Rs.
crore)
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Quarter
ended
30 September 2008
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Quarter
ended
30 September 2007
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Net
sales
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1,396
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1,168
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PBIDT
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325
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357
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| Profit
after tax |
164
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186
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UltraTech Cement Limited, an Aditya Birla Group company, today
announced its unaudited financial results for the quarter ended
30 September 2008.
Financials
The company’s net sales increased by 20 per cent from Rs.1,168
crore in Q2FY08 to Rs.1,396 crore. Profit before interest, depreciation
and tax at Rs. 325 crore (Rs. 357 crore) and profit after tax
at Rs.164 crore (Rs.186 crore) were lower by 9 per cent and
12 per cent respectively.
The combined cement and clinker sales of 3.98 mmt reflected
a growth of 13 per cent YoY.
Domestic realisation remained flat sequentially. A sharp increase
in prices of coal and raw material resulted in variable costs
rising by 37 per cent compared to Q2FY08. New coal linkages
have not yet become operational, while there was a short fall
in Q2 on coal supplies against existing linkages. This compelled
the company to increase coal purchase from the domestic market
at a significantly higher price and meet the balance requirement
through imports. Imported coal prices more than doubled to US$
190 pmt year on year. These developments have put pressure on
the company’s operating margins via-a-vis the previous
two quarters.
Capex
The company started commercial production of clinker from the
expansion line at Andhra Pradesh Cement Works (APCW) and of
cement from the cement grinding unit at Ginigera in Karnataka.
Upon complete commissioning of capacity at APCW, the total capacity
of the company will increase to 23.1 mmt by end of CY08.
All other existing capex projects relating to expansion and
modernisation are on track. Most of the thermal power plants
(TPP) being set up across the company’s units will be operational
in a phased manner during FY09. Commissioning of new ready mix
concrete plants is in line with the expected progress.
Outlook
There is a visible slowdown in the real estate and infrastructure
sector on account of the current liquidity crisis. This has
resulted in a slackening of demand for cement which is now expected
to grow around 7 per cent to 8 per cent as compared to earlier
forecasts of 9 per cent to 10 per cent. The recent fall in the
dollar price of imported coal has been partly neutralised by
the falling value of the Indian Rupee. The situation is further
aggravated by continuous reduction in linkage coal availability
and no new linkages in operation. Further, the likely commissioning
of around 90 million tonnes capacity in a phased manner over
the next three years could lead to a surplus scenario by CY09
resulting in pressure on earnings, sales realisation and margins.
All of these pose a challenge to the cement industry. The company
will continue to focus on sustaining plant performance and optimise
efficiencies. The new capacities at APCW, grinding unit at Ginigera
and the TPPs across locations will to some extent offset the
effect on the company’s margins on account of rising input
costs.
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For more information,
contact:
Dr. Pragnya Ram,
Group Executive President,
Corporate Communications,
Aditya Birla Management Corporation Private Limited
Tel: 91-22-6652 5000 / 2499 5000
Fax: 91-22-6652 5741/ 42
Email: pragnya.ram@adityabirla.com
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