UltraTech Cement, an Aditya Birla Group company, has announced its financial results for the year ended 31 March 2011. The results for the year and the quarter ended 31 March 2010 have been recast to include Samruddhi Cement Ltd’s performance for like-for-like comparison and are strictly not comparable with the corresponding period of the previous year.
UltraTech reported that its net sales for FY2011 stood at Rs13 210 crores, as compared to Rs13 442 crores in the corresponding period of the previous year. Profit before interest and tax is Rs 2063 crores as against Rs 3319 crores in the same period last year.
A statement released on the company’s website also notes that FY11 recorded industry demand growth of 5.3%, the lowest in the last ten years. This was attributed to the de-growth/subdued growth in various key cement consuming states driven by lower infrastructure spending, slowdown in the realty sector, an extended monsoon and non-availability of railway wagons.
The company’s net sales for Q4 FY2011 stood at Rs 4490 crores as compared to Rs 4206 crores in the corresponding period of the previous year, while its profit before interest and tax is Rs 904 crores compared to Rs. 858 crores in the corresponding period of last year.
During the quarter variable cost rose by 14% mainly on account of the substantial increase in input and energy costs. Imported coal prices rose by 27% year-on-year, and domestic coal prices shot up by 30% in March 2011. Variable cost during FY11 has also increased by 13% on account of escalation in the costs of inputs like flyash, slag and energy costs.
The company also announced that it has a capital outlay of around Rs 11 000 crores to be spent over the next three years. This will include setting up of additional clinkerisation plants at Chhattisgarh and Karnataka, together with grinding units, bulk packaging terminals and ready mix concrete plants across the country. Orders have been placed for major equipment for setting up the projects. It is hoped that the expansions, which are expected to be operational from early FY14, will enhance the company’s cement capacity by 9.2 million tpa.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/27042011/ultratech_cement_announces_capital_outlay_plans/