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Financial Position of Ultra Tech: Financials-Q4FY07

UltraTech Cement Limited reported financial results for the quarter and year ended March 31, 2007. For Q4 2007, net sales were Rs. 1,466 crore, a 38% increase from the previous year. Profit after tax was Rs. 232 crore, up 76% from the previous year. For the full year 2007, net sales were Rs. 4,911 crore, a 49% increase, and profit after tax was Rs. 782 crore, a 240% increase from the previous year. The company saw increases in production, capacity utilization, sales volumes, and the share of blended cement, driving the financial gains.

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82 views4 pages

Financial Position of Ultra Tech: Financials-Q4FY07

UltraTech Cement Limited reported financial results for the quarter and year ended March 31, 2007. For Q4 2007, net sales were Rs. 1,466 crore, a 38% increase from the previous year. Profit after tax was Rs. 232 crore, up 76% from the previous year. For the full year 2007, net sales were Rs. 4,911 crore, a 49% increase, and profit after tax was Rs. 782 crore, a 240% increase from the previous year. The company saw increases in production, capacity utilization, sales volumes, and the share of blended cement, driving the financial gains.

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rahulpatel27
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FINANCIAL POSITION OF ULTRA TECH

UltraTech announces financial results for the quarter and year


ended 31 March 2007
Rs. crore

Q4FY07 Q4FY06 FY07 FY06

Net sales 1,466 1,060 4,911 3,299


PBIDT 428 225 1,479 591
PAT 232 132 782 230

UltraTech Cement Limited, an Aditya Birla Group company today


announced its financial results for the quarter and year ended 31
March 2007.

Financials-Q4FY07

For the quarter ended 31 March 2007 the company attained net
revenues of Rs.1,466 crore (Rs.1,060 crore). After providing for
interest at Rs.20 crore (Rs. 22 crore), depreciation at Rs.60
crore (Rs. 60 crore) and tax at Rs.116 crore (Rs.11 crore), the
profit after tax stood at Rs. 232 crore (Rs.132 crore).

The company produced 3.81 mmt of clinker (3.47 mmt) and 4.17
mmt of cement (4.01 mmt). The capacity utilisation stood at 113
per cent compared to 102 per cent in the corresponding period of
the previous year.

Aggregate sales volumes was 5.04 mmt (4.63 mmt) up by 9 per


cent. Domestic sales volume grew by 6 per cent from 3.93 mmt to
4.18 mmt, registering a growth of 6 per cent. Aggregate exports
rose by 23 per cent from 0.70 mmt to 0.86 mmt.
Financials—FY07
For the year ended 31 March 2007 net revenues were
Rs.4,911crore (Rs.3,299 crore). After providing for interest at
Rs.87 crore (Rs.90 crore), depreciation at Rs.226 crore (Rs.216
crore) and tax at Rs.384 crore (Rs.56 crore), the profit after tax
stood at Rs.782 crore (Rs.230 crore).

During the year the company produced 14.22 mmt of clinker


(13.36 mmt) and 14.63 mmt of cement (13.70 mmt). Its effective
capacity utilization was 101 per cent compared to 88 per cent
during the previous year.

Aggregate sales volumes for FY07 at 17.67 mmt (15.70 mmt) was
up by 13 per cent. Domestic sales volume which constituted
around 80 per cent of the aggregate sales volume was up from
13.12 mmt in FY06 to 14.20 mmt in FY07. Its exports grew from
2.57 mmt in FY06 to 3.46 mmt in FY07.

The share of blended cement in the domestic market grew from


51 per cent in FY06 to 60 per cent in FY07.

The company's performance during Q4FY07 and FY07 was driven


primarily by improved capacity utilization, growth in sales volume,
better realization together with a higher share of blended
cement.

Variable cost increased by over 7 per cent during FY07, and


around 11 per cent for Q4FY07. This was mainly on account of an
escalation in the cost of raw materials, consequent to mounting
freight charges and the cost of imported coal.

Dividend
The board of directors had, in March 2007, declared an interim
dividend of 40 per cent, aggregating to Rs.49.8 crore. Together
with the corporate dividend tax of Rs.7.0 crore, the total payout
was Rs.56.8 crore. The board, at its meeting, has decided not to
recommend a final dividend and to treat the interim dividend as
final dividend.

Capex

The capex plans announced by the company are on track. The


captive power plants being set up at the company's units in
Andhra Pradesh, Chattisgarh and Gujarat will be commissioned
during calendar year 2008. Upon commissioning these would result
in lowering of power costs. The enhancement of capacity at the
unit in Andhra Pradesh, expected to be commissioned in FY08, will
cater to the growing markets in South India.

Ready mix concrete is likely to see substantial growth in the


years to come. Recognising the opportunities that this business
will offer, the company is setting up ready mix concrete plants in
various places in the country.

The company is committed to reducing CO2 emissions in its


manufacturing process. Towards this end, a project at its unit in
Andhra Pradesh for optimum utilisation of clinker by increasing
blended cement has been granted CERs by the UNFCC. Another
project for utilising the clinker cooler waste gases to generate
power has been completed. This project is in the final stages of
validation and verification by UNFCC for grant of CERs.

Outlook
Demand is expected to grow by 9 per cent linked to GDP. The
availability and rising prices of quality coal is a concern area. The
addition of new capacities is likely to result in a surplus scenario
in FY09. The industry is moving towards a structural shift — from
selling cement to building materials. Against this background, the
company's focus will be on sustaining plant performance,
improving service standards and timely commissioning of projects.

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