UltraTech reports results for the quarter ended 31 December 2008

1st January, 2010

19 January 2009

UltraTech reports results for the quarter ended 31 December 2008

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(Rs. crore)
 Quarter ended
31 December 2008
Quarter ended
31 December 2007
Net sales1,6311,380
PBIDT451490
Profit after tax238279

UltraTech Cement Limited, an Aditya Birla Group company, today announced its unaudited financial results for the quarter ended 31 December, 2008.

Financials
Net sales at Rs.1,631 crore is up by 18 per cent compared to Q3FY08 (Rs. 1,380 crore). Profit before interest, depreciation and tax at Rs. 451 crore (Rs. 490 crore) and profit after tax at Rs. 238 crore (Rs. 279 crore) were lower by 8 per cent and 15 per cent respectively. Cash profit remained flat at Rs. 358 crore (Rs.353 crore).

The company has a strong balance sheet with debt: equity ratio of 0.5 and interest cover of more than 10 times.

The company produced 3.98 mmt (3.60 mmt) of cement in Q3FY09 registering a growth of 11per cent YoY.

Domestic cement sales volume at 3.80 mmt (3.40 mmt) registered a growth of 12 per cent. Exports were lower at 0.69 mmt (0.79 mmt). Total sales volume increased by 6 per cent from 4.32 mmt in Q3FY08 to 4.57 mmt during the quarter under review. Domestic realisation remained flat sequentially. Though fuel prices started softening from November, 2008, its real impact will be reflected in Q4FY09. During Q3FY09, as the company consumed fuel out of inventory and order in pipeline, the variable cost was up by 35 per cent.

Capex
All project capex viz. the expansion at Andhra Pradesh Cement Works (APCW), the grinding unit at Ginigera in Karnataka and installation of captive thermal power plants across the company’s units will be fully operational during FY09.

Upon the commissioning at APCW and Ginigera, the total capacity of the company will stand increased from 18.2 mmt to 23.1 mmt. With the commissioning of the new TPPs, the company will have access to 271 mws of captive power which will cater to around 80 per cent of its power requirements.

Outlook
The government has taken several steps for improving liquidity in the system. It has announced two stimulus packages to boost the sagging economy. Despite this, funding continues to be a problem in the real estate and infrastructure sectors. There is a slowdown in construction activities and corporate capital investments, leading to slackening in demand for cement. The sector is now expected to grow in line with GDP.

Additionally, the likely release of around 100 million tonnes capacity in a phased manner over the next two years coincides with slower economic growth. This will put pressure on sales realisation and margins in FY10.

The company will continue to focus on sustaining plant performance and optimising efficiencies.

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