26 October 2010
UltraTech Cement announces results for the Quarter ended 30 September 2010
|30 September 2010||30 September 2009 (LFL)||30 September 2009|
UltraTech's performance for the second quarter reflects the first financial results post the amalgamation of Samruddhi Cement Limited with the Company. The results include the performance of Samruddhi with effect from 1 July 2010, which was the Appointed Date for the amalgamation. The results for the corresponding Quarter of FY10 have been re-casted to include Samruddhi's performance for like-for-like comparison and are strictly not comparable with the corresponding period of the previous year.
Net Sales stood at ` 3,215 crores as compared to ` 3,538 crores in the corresponding period of the previous year. Profit before Interest, Depreciation and Tax is ` 476 crores while Profit after Tax is ` 116 crores vis-a-vis ` 1,184 crores and ` 631 crores respectively in the corresponding period of the previous year.
The Company produced 8.61 MMT (8.36 MMT) of grey cement. The combined cement and clinker sales of grey cement was 9.10 MMT (8.64 MMT).
A subdued demand on account of monsoons, capacity additions, fall in realisation coupled with increase in costs has impaired the Company's performance. The prices of imported coal rose from US$ 76/Mt to US$ 110/Mt substantially escalating the Company's energy cost. These factors have put the Company's margins under pressure.
Scheme of Amalgamation and acquisition of ETA Star Cement in UAE, Bahrain and Bangladesh
The Scheme of Amalgamation of Samruddhi Cement Limited ("Samruddhi") with the Company ("the Scheme") has become effective from 1 August 2010 and is operative from the Appointed Date i.e.1 July 2010.
In terms of the Scheme, 14,95,33,469 equity shares of ` 10 each have been allotted to shareholders of Samruddhi including the Custodian(s) of the Global Depository Receipts (GDRs).
The Company's wholly-owned subsidiary, UltraTech Cement Middle East Investments Limited, has completed the acquisition process of ETA Star Cement together with its operations in the UAE, Bahrain and Bangladesh. It has also acquired management control.
With the amalgamation of Samruddhi and the acquisition of ETA Star Cement, the Company's capacity stands augmented to 52 mtpa making it the eigth-largest cement company in the world.
The Board, at its meeting held today, inducted Mr. Adesh Gupta, Whole-time Director and CFO of Grasim Industries Limited as an additional director of the Company with immediate effect.
The demand for cement is expected to grow around 10% on the back of a good monsoon and the government's initiatives to boost rural demand, infrastructure and housing. These aspects augur well for the Company.
UltraTech Cement Limited
Regd. Office: B Wing, Ahura Centre, 2nd Floor, Mahakali Caves Road, Andheri (East), Mumbai 400 093 Website: www.ultratechcement.com / www.adityabirla.com Email: email@example.com
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