UltraTech announces quarterly financial results

Domestic sales increased by 21% in 2Q18. However, rising energy and logistics costs, alongside a depreciation in the value of rupees, has led to a 14% increase in costs, as compared to 2Q18. Thus, UltraTech’s profits are down compared to 2017.

UltraTech is in the process of acquiring Century Textiles and Industries Ltd. The scheme has been approved by the company’s Board of Directors, the stock exchanges, and the Competition Commission of India. Century’s cement business consists of three integrated cement units in Madhya Pradesh, Chhattisgarh, and Maharashtra, as well as a grinding unit in West Bengal. It is hoped that, given UltraTech’s track record of completing transactions and turning around assets, the transaction will help Century deleverage and focus on future plans.

On the completion of its acquisition of Century and ongoing capacity expansions, UltraTech’s manufacturing capacity will be augmented to 111.1 million tpy, including its overseas capacity.

In terms of outlook, UltraTech is witnessing an upward movement, with higher spends on infrastructure and a government sponsored housing programme. The additional capacities acquired by UltraTech mean that the company believes itself to be well placed to participate in the growth of the economy.

Read the article online at: https://www.worldcement.com/asia-pacific-rim/22102018/ultratech-announces-quarterly-financial-results/