UltraTech reports results for the quarter ended 30 September 2006

1st February, 2006

16 October 2006

UltraTech reports results for the quarter ended 30 September 2006

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 per cent
Net sales57
PBDIT264

 

Rs. in Crore
 Quarter ended 30 September 2006Quarter ended 30 September 2005per cent change
Net sales1,00564057
PBIDT26673264
Profit after tax1270.132

 

UltraTech Cement Limited, an Aditya Birla Group company, today announced its unaudited financial results for the quarter ended 30 September 2006. During the quarter cement volume growth has been on par with the industry. Production rose, coupled with an increase in domestic and export realisation.

Net sales at Rs.1,005 crore was 57 per cent higher compared to the corresponding quarter in FY 2006 (Rs.640 crore). Profit before interest — Rs.24 crore (Rs.22 crore), depreciation — Rs.55 crore (Rs.52 crore) and tax — Rs.60 crore {Rs.(2)crore} was Rs.266 crore (Rs.73 crore). Profit after tax stood at Rs.127 crore (Rs.0.1 crore).

The company produced 30.71 lmt of clinker (28.24 lmt) and 29.99 lmt of cement (27.13 lmt). The clinker capacity utilisation was 85 per cent (78 per cent) while effective capacity utilisation for cement was 84 per cent (69 per cent). The jetty at the company's Gujarat plant is traditionally taken up for maintenance in this quarter, coinciding with the monsoons.

Cement volume growth at 11 per cent during the quarter was on par with the industry. Overall sales volume recorded a growth of 17 per cent from 31.45 lmt in Q2 FY2006 to 36.81 lmt in Q2 FY2007. Cement exports for Q2 FY2007 was 2.22 lmt (2.51 lmt) while clinker exports was 4.71 lmt (1.57 lmt). Overall exports recorded a growth of 70 per cent.

Domestic cement realisation increased by 45 per cent over the depressed price levels in the same period last year, while export prices increased by 14 per cent.

The variable costs increased by five per cent mainly on account of increase in imported coal prices due to hardening of shipping freight.

UltraTech has marked a capex of Rs.2,698 crore to be spent over the next three years. This includes setting up of captive power plant's aggregating to 192 mws at its units in Gujarat, Chhattisgarh, Andhra Pradesh and a brownfield expansion of four mtpa at Andhra Pradesh.

At the board meeting held on date, Mr.Saurabh Misra, CEO was inducted into the board and appointed Managing Director of the company with effect from 16 October 2006.

The government's thrust on infrastructure and the heightened housing demand augurs well for the industry. Demand is expected to grow over nine per cent CAGR linked to GDP growth of eight per cent. UltraTech's outlook for the full year is promising. Its focus will be to sustain performance and achieve timely commissioning of its capex programmes.

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
Email: pragnya.ram@adityabirla.com