21 April 2009
UltraTech Cement announces financial results for the year ended 31 March 2009
PAT down 3 per cent for FY 2009
Increased volume mitigates fall in margins
|FY 2009||FY 2008||Change (in percent)|
|Profit after tax (PAT)||977||1,008||(3)|
UltraTech Cement Limited, part of the Aditya Birla Group, announced its financial results today for the year ended 31 March, 2009.
Financials –; FY 2009
The company achieved net revenues of Rs.6,383 crore representing a 16 per cent growth contributed by higher sales volume and higher prices, with the latter driven by rising input costs, with consequent fall in margins from 33 per cent in FY 2008 to 28 per cent in FY 2009. Profit before interest, depreciation and tax was Rs.1,810 crore, 1 per cent short of FY 2008. Profit after tax at Rs.977 crore was 3 per cent below the previous year after providing for interest of Rs.126 crore (Rs.82 crore), depreciation of Rs.323 crore (Rs.237 crore) and tax of Rs.384 crore (Rs.499 crore). The lower tax payout reflects the impact of higher depreciation arising from the increased investments in new capacity / power plants. As a result, cash profit was Rs.1,481 crore (Rs.1,228 crore).
Effective capacity utilisation on expanded capacity stood at 96 per cent and represents the company’s efforts to maximise availability. The export ban on clinker during the period April 2008 to May 2008 adversely affected the export of clinker, for which there was no economic outlet in India. Simultaneously, variable cost increased by over 23 per cent during FY 2009 on account of higher energy and raw material cost.
The company has a strong balance sheet with a debt equity ratio of 0.6 and an interest cover of more than 11 times.
Financials –; Q4FY2009
The company achieved net revenues of Rs.1,860 crore (Rs.1,601 crore) driven by an 11 per cent growth compared to industry growth of 9 per cent. The expanded volume mitigated cost inflation contributing to a profit before interest, depreciation and tax of Rs.562 crore (Rs.517 crore), though margins declined from 32 per cent in Q4 FY 2008 to 30 per cent in Q4FY 2009. The profit after tax stood at Rs.309 crore (Rs.283 crore) after providing for interest of Rs.34 crore (Rs. 21 crore), depreciation of Rs. 91 crore (Rs.65 crore) and tax of Rs.128 crore (Rs.148 crore). Higher depreciation contributed to an improvement in cash profit at Rs.469 crore (Rs.304 crore).
Effective capacity utilisation was 107 per cent on the expanded capacity. Variable costs increased by 8 per cent on the corresponding quarter in the previous year; though a softening in fuel prices yielded a 12 per cent reduction in variable costs on a sequential basis. Regrettably, this gain was neutralised by an increase in rail freight.
A good monsoon and the impact of the loan waiver scheme and the 6th Pay Commission revision supported growth in retail housing apart from an increase in pre-election expenditure by state governments on local infrastructure.
The company’s capacity stands augmented to 21.9 million tpa on 31 March, 2009 following the commissioning of its grinding unit at Ginigera in Karnataka and two new cement mills at its Andhra Pradesh Cement Works (APCW). This capacity will rise to 23.1 million tpa by the end of Q1FY 2010 on commissioning of residual capacities in the pipeline at APCW.
The company has also commissioned 192 mw of captive thermal power plant raising its total capacity to 236 mw, which represents nearly 80 per cent of your company’s power requirements.
The board of directors 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, resulting in a total payout of Rs.72.82 crore.
Future expectations of economic growth, and its impact on industry growth, are contingent on a good monsoon and a stable government post-elections. A slow down in economic growth will aggravate the inevitable surplus in production capacity. Over 20 million tpa of new capacity has already been commissioned in FY 2009 and the expected commissioning of an additional 50 million tpa in FY 2010 and a further 15 million tpa in the following year is likely to result in a reduction in capacity utilisations, with adverse impact on margins.
For more information, contact:
Dr. Pragnya Ram
Group Executive President
Corporate Communications & CSR
Aditya Birla Management Corporation Private Limited
Tel: 91-22-6652 5000 / 2499 5000
Fax: 91-22-6652 5741/ 42