20 July 2007
UltraTech posts impressive results for the quarter ended 30 June 2007
|Rs. in Crore|
|30. 6. 2007||30.6.2006|
|Profit before tax||259||211||23%|
UltraTech Cement Limited, an Aditya Birla Group company, today announced its unaudited financial results for the quarter ended 30 June 2007.
Net sales increased by 16 per cent from Rs.1,180 crore in Q1 FY07 to Rs.1,356 crore. Profit before interest, depreciation and tax at Rs.460 crore (Rs.388 crore) was up 19 per cent while profit after tax at Rs.259 crore (Rs.211 crore) was up 23 per cent.
The company produced 3.91 mmt (3.88 mmt) of cement. The effective capacity utilisation was 104 per cent.
While domestic sales volume at 3.67 mmt (3.48 mmt) registered a growth of 5 per cent, exports were curtailed to cater to the growing domestic demand.
The cost of production escalated by 11 per cent quarter on quarter due to higher energy costs with coal prices increasing by as much as 22 per cent.
The setting up of the captive power plants at the company’s units in Chattisgarh and Gujarat is on track. The power plant in Gujarat will be commissioned in a phased manner commencing from the last quarter of the current financial year.
The capacity expansion at the unit in Andhra Pradesh together with setting up of a split grinding unit and captive power plant is progressing on schedule. Considering the growing demand in the southern markets and the availability of slag, it has been decided to augment the capacity to 4.9 million tonnes per annum instead of 4 million tonnes per annum as had been decided earlier. The split grinding unit is being set up at Ginigera in Karnataka.
Additionally, the Board has approved setting up a 33 mw TPP at the company’s unit in Awarpur, Maharashtra. Further, the grinding capacity at the unit in Gujarat is also being augmented by 2 million tonnes per annum to cater to the markets of western India.
In view of the growing potential of Ready Mix Concrete, the company is setting up Ready Mix Concrete plants across the country.
A capex of around Rs.3,300 crore has been earmarked, to be spent over the next three years on these expansions and de-bottlenecking.
The industry has announced additional capacities of around 90 million tonnes to be commissioned over the next three years. These could result in a surplus scenario thereby putting pressure on prices from the middle of FY 2009. However, the demand for cement is expected to grow around 10 per cent linked to GDP growth and the government’s thrust on infrastructure and the heightened housing demand augurs well for the industry.
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