Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Stock Report

| More

UltraTech Cement Ltd - Financial Results for the quarter ended 30th September, 2019

Posted On: 2019-10-22 13:04:27

UltraTech Cement Limited, has announced its unaudited financial results for the quarter ended 30th September, 2019.

Financials

Consolidated Net Sales was Rs. 9,491 crore compared to Rs. 9,088 crore over the corresponding period in FY19. Profit before Interest, Depreciation and Tax was Rs. 2,072 crore vis--vis Rs. 1,564 crore and Profit after Tax was Rs. 579 crore compared to Rs. 356 crore.

Annual maintenance undertaken during the quarter, resulted in variable costs increasing 3% compared to the previous quarter. On the other hand, energy cost was down 9%, attributable to increase in share of green power consumption from 8.4% in Q2FY19 to 10.5% during the quarter; reduced power consumption and sustained energy gains.

Scheme of Demerger: Acquisition of Century's Cement Business

UltraTech completed the acquisition of Century's cement business, with the Scheme of Demerger becoming effective from 1st October, 2019. With this acquisition, UltraTech's cement manufacturing capacity stands augmented to 117.4 mtpa, including its overseas capacity. This makes UltraTech the 3rd largest cement company in the world, outside of China. It is also the only company in the world to have a capacity of over 100 million tons in a single country, outside of China.

UltraTech has allotted 13,961,960 equity shares of Rs.10/- each to shareholders of Century as on 14th October, 2019, being the Record Date fixed by Century in terms of the Scheme.

The National Company Law Tribunal, Mumbai Bench, while sanctioning the Scheme has fixed 20th May, 2018 as the Appointed Date. Consequently, the Company's financials have been restated from that date, to include the financials of the acquired Century cement business.

The quarter witnessed depressed cement demand, on account of the extended monsoons and heavy floods in almost all parts of the country. The situation was more aggravated in Eastern and Central India, where Century's cement plants are located. These plants had also undertaken major planned annual shut downs during the period. All of these factors impacted the performance of the acquired cement plants of Century. UltraTech's pan India presence enabled it to take advantage of the favourable demand situation in the markets of North India. Given its vast experience in integrating acquired Units with its existing operations and bringing them up to its operating standards, the Company is focused on replicating the same for the acquired cement plants.

Corporate Developments

UltraTech Nathdwara Cement Limited

With major overhauling of the plants and completion of quality upgradation, UltraTech Nathdwara Cement Limited is fully integrated with the UltraTech systems and processes. The plants have achieved optimal efficiencies. During this period major maintenance shutdown was undertaken by the Company resulting in higher costs and lower capacity utilisation. However, the Company has recorded a robust performance operating in the northern markets. It has broken even at PAT despite a higher interest burden.

Acquisition in FY18

The 21.2 mtpa cement capacity acquired from Jaiprakash Associates in June, 2017 are operating in line with the existing plants of the Company and have achieved PBT break-even during the previous quarter. The Bara Grinding Unit is scheduled for commissioning during Q3-FY20.

Capex

The Board at its meeting held today approved capex of Rs. 940 crore for making premium products with an increase in its grinding capacities in Bihar and West Bengal by 0.6 mtpa each and a new grinding unit of 2.2 million tons in Odisha. This will further strengthen the Company's position in the eastern markets. All the plants will be commissioned by January - March, 2021.

Outlook

On the basis of positive demand seen in North India in Q2 as many parts of North India were not impacted by heavy rains and floods, there is a good possibility of a normalized demand for cement going forward. The Government's firm commitment to revive the economy and the thrust on infrastructure spending augur well for the growth of cement demand. The heavy rains in the country should also prove beneficial for the kharif crop, which should again help revive rural demand. The company with its presence across all the zones in the country, is the best positioned to take advantage of the revival in cement demand, despite the anomalies that may get created in demand patterns in some parts of the country due to extraneous reasons.

Shares of ULTRATECH CEMENT LTD. was last trading in BSE at Rs.4295.5 as compared to the previous close of Rs. 4257.4. The total number of shares traded during the day was 33117 in over 2155 trades.

The stock hit an intraday high of Rs. 4363.8 and intraday low of 4256.9. The net turnover during the day was Rs. 143162578.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Shaily Engineering Plastics Limited clarifies on media reports regarding GST Search

Welspun Corp Ltd bags contracts for supply of 179 KMT pipes

Maharashtra Seamless secures Prestigious ONGC Orders

NBCC India Ltd receives order from Deparment of Revenue

GST search in Shaily Engineering Plastics Ltd's Rania Unit

Ecoplast Ltd to shut down Guwahati plant of subsidiary

KNR Constructions Ltd receives work order of Rs. 165.67 crores

Urja Global Ltd enters into JV for Electric Car

Banco Products India Ltd approves disinvestment

Bank of India board approves fund raising through issue of upto 125 crore shares

Ind-Ra affirms JK Paper's long-term issuer rating

Security and Intelligence Services India Ltd to acquire 51% in Adis Enterprises Pvt Ltd

ITC Ltd acquires stake in Delectable Technologies Pvt. Ltd.

Dynacons recognized as part of the Deloitte Technology Fast 50 India 2019

TCS' Advanced Drug Development Suite wins the India Pharma Award 2019

Zensar Partners with Education Africa to support students of Business Management

Fire at Oriental Aromatics Ltd's catalyst plant

Mitsu Chem Plast Ltd Board to consider Bonus Issue

Shri Jairam Sridharan, CFO of AXIS Bank resigns

Carnation Industries Ltd shuts plant for maintenance, repays dues to SBI, PNB

Issue of US$ 500 Million 3.50 Per Cent Notes By REC Limited

Vascon Engineers Ltd receives Rs. 132.69 crores work order from AAI

KEC International wins New Orders of Rs. 1,025 crore

RBI imposes penalty of Rs. 25 lakh on Andhra Bank

JSW Steel Ltd to seek clarifications on NCLAT order

G Bank, Myanmar Selects Infosys Finacle to Power its Growth

Thomas Cook India's Regional Maharashtra Tours witness a surge in demand of 27% from the State

Maruti Suzuki to proactively recall 63,493 Petrol Smart Hybrid variants of Ciaz, Ertiga and XL6 models

Dr. Reddy's Laboratories announces the launch of D.eferasirox Tablets for Oral Suspension, in the U.S. Market

Granules India Ltd clarifies on presence of NDMA in Metformin manufactured by the company

Bajaj Finance participates in QIP of RBL Bank Ltd

Cadila Healthcare Ltd receives EIR for API facility at Dabhasa, Gujarat

RBL Bank successfully closes QIP, raises Rs. 2,025 Crore

CARE revises ratings of Shakti Pumps India Ltd

Aite Group Names Majesco the Top 'Best-inClass' Vendor in the P&C Policy Administration Aite Matrix Report

Liberty Mutual Enhances Commercial Insurance Underwriting through Mastery of Big Data, adding more value to Brokers and Buyers

Shortlisted ideas from the European Tour Innovation Hub with Tata Communications show how latest digital technologies could revolutionise golf

Mercator Ltd board approves sale of PI in oil block

Pennar Industries bags orders worth INR 302 Crore

ICRA assigns credit ratings to NELCAST Ltd

Affle launches Vizury Engage360 to simplify omnichannel marketing

CARE A+ rating of Equitas Small Finance Bank Ltd reaffirmed

Reliance Power Ltd updates on rating action by Ind-RA

Moody's downgrades Yes Bank's ratings, assigns negative outlook

CARE reaffirms rating of NACL Industries Limited

Narayana Hrudayalaya announces discontinuation of Hospital Project in Kenya

Renascent Power acquires 75.01% stake in Prayagraj Power Generation Company Ltd

Sadbhav Tumkur Highway Private Ltd signs termination of concession agreement with NHAI

Nirlon Ltd, J.P. Morgan Sign Real Estate Transaction in Mumbai

Gati launches itself into the next phase of growth with All Cargo Logistics & Kintetsu World Express, Japan







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019