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PRESS
RELEASE
25
January
2011
UltraTech
Cement announces results for
the quarter ended 31 December 2010
Click
here to view the results
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(`
crore)
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Quarter
ended |
| |
31
December 2010
|
31
December 2009 (LFL#)
|
31
December 2009 |
|
Net
sales
|
3,715
|
3,682
|
1,652 |
|
PBIDT
|
768
|
1,019
|
414 |
| Profit
after tax (PAT) |
319
|
499
|
196 |
| # LFL
= like for like |
UltraTech
Cement Limited, an Aditya Birla Group company, today announced
its unaudited financial results for the quarter ended 31 December
2010. The results for the corresponding quarter of FY10 have
been re-cast to include Samruddhi Cement Limited’s performance
for a like-for-like comparison. In that sense this quarter's
numbers are strictly not comparable with the corresponding
period of the previous year.
Financials
Net sales stood at ` 3,715 crores
as compared to ` 3,682 crores in the
corresponding period of the previous year. Profit before interest,
depreciation and tax is ` 768 crores
vis-a-vis ` 1,019 crores. Profit after
tax is ` 319 crores vis-a-vis `
499 crores in the corresponding period of the previous year
and ` 116 crores in Q2FY11.
The company
produced 9.30MMT (8.99 MMT) of grey cement. The combined domestic
cement and clinker sales of grey cement was 9.16 MMT (9.05
MMT).
White Cement
– During the quarter, the company produced 1.47 LMT (1.38
LMT) of white cement. It sold 1.44 LMT (1.30 LMT) white cement
and 0.81 LMT (0.60 LMT) wall care putty.
During
Q3FY11, industry demand growth was significantly lower than
the expected growth of over eight per cent. This was mainly
on account of the prolonged monsoon, non-availability of resources,
lower realty and infrastructure spending and de-growth in
the markets of south India where the company has a significant
presence.
During
the nine-month period ended 31 December, 2010, the industry
witnessed a capacity addition of around 14 MMT over and above
the capacity addition of more than 60 MMT in FY10. These factors
have resulted in the industry capacity utilisation remaining
at 75 per cent.
On the
cost front, there was continuous pressure with prices of imported
coal rising from US$ 92/Mt in Q3FY10 to US$ 125/Mt, an increase
of around 36 per cent.
Collectively,
these aspects have affected the company’s performance.
While domestic cement volume rose by one per cent YoY and
by four per cent sequentially, realisation was lower by three
per cent as compared to Q3FY10 though on a sequential basis
it improved by around 12 per cent. Despite improved realisation
compared to Q2FY11, margins remained under pressure.
Capex
The company has a capital outlay of around `
10,000 crores to be spent over the next three years.
These include setting up of additional clinkerisation plants
at Chhattisgarh and Karnataka along with grinding units and
bulk packaging terminals across various states. To take these
projects forward, orders for major equipment have been placed.
Consequent to these expansions, the total cement capacity addition
will be 9.2 mtpa, which will be operational from early FY14.
Outlook
Cement demand is expected to grow around eight per cent to 10
per cent from FY12 on the back of the government’s initiatives
to boost rural development, infrastructure and housing. These
aspects augur well for the company. The pricing environment
is likely to remain challenging coupled with rising energy costs
due to greater reliance on imports, which will continue to squeeze
margins.
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