Mumbai, 24th January, 2020
Financial Results for the quarter ended 31st December 2019
provided a one-time expense of Rs. 133 crores as part of other expenditure, against various disputed and contingent liabilities)
UltraTech Cement Limited, today announced its unaudited financial results for the quarter ended 31st December, 2019.
Consolidated Net Sales was Rs. 10,176 crores compared to Rs. 10,294 crores over the corresponding period in FY19. Profit before Interest, Depreciation and Tax was Rs. 2,141 crores vis-à-vis Rs. 1,707 crores and Profit after Tax was Rs. 712 crores compared to Rs. 396 crores.
Acquisition of Century’s Cement Business
The Scheme of Demerger for acquiring the cement business of Century Textiles and Industries Limited became effective from 1st October, 2019. The Company’s financials were restated from 20th May, 2018, to include the financials of the acquired Century cement business, in terms of the National Company Law Tribunal, Mumbai Bench, sanctioning the Scheme of Demerger.
The plants have been ramping up production month on month touching a capacity utilisation of 79% in December, 2019. The Company has put in place a cost reduction plan to bring the operations in line with its existing standards. 55% of sales from the Century plants in December were under UltraTech brand. Brand integration is underway and is expected to reach 84% by Q2FY21. The overall integration is likely to be completed by end of Q2FY21. Given its vast experience in integrating acquired Units and bringing them up to its operating standards, the Company is confident on replicating the same at the acquired Century cement plants.
During the quarter, the Company’s wholly-owned subsidiary UltraTech Cement Middle East Investments Limited divested its entire shareholding in Emirates Cement Bangladesh Limited and Emirates Power Company Limited to HeidelbergCement Bangladesh Limited at a final Enterprise Value of BDT equivalent of US$ 30.2 Million.
UltraTech Nathdwara Cement Limited
UltraTech Nathdwara Cement Limited is fully integrated with the UltraTech systems and processes. The plants have achieved optimal efficiencies and are PBT accretive.
Acquisition in FY18
The 21.2 mtpa cement capacity acquired from Jaiprakash Associates in June, 2017 are operating in line with the existing plants of the Company. Phase I of the Bara Grinding Unit having capacity of 2 mtpa has been commissioned.
Signs of revival were visible in some markets during the latter part of Q3FY20. This, together with the Government’s firm commitment to revive the economy and the thrust on infrastructure spending augur well for the growth of cement demand.
UltraTech, with its presence across all the zones in the country, is the best positioned to take advantage of the revival in cement demand, despite the anomalies that may get created in demand patterns in some parts of the country due to extraneous reasons.