The Financial comparison of UltraTech

with its direct Competitors

BABU WAGH (177780592114)

Som-Lalit Institute of Business Management

Ahmadabad - 778
Presentation Flow
• Introduction
• Literature Review
• Problem Definition
• Research Methodology
• Data Analysis and Interpretation
• Findings
• Conclusion and Recommendations
• Detail about the study

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.
Introduction
• About the Cement Industry
The cement industry is the building block of the nation’s
construction industry. India is the 2nd largest cement producer in the
world. With annual consumption of cement in India is 270MMT. And
the capacity is nearby 460MMT. As of FY17, a total of 575 operational
cement plants in the country.

• Major Players
- UltraTech Cement Ltd. - Binani Cement
- ACC Cement - Ramco Cement
- Shree Cement - OCL India
- Ambuja Cement - J. K. Cement
Growth rate
The data in the graph which is
shows how the cement industry is
growing in India. As on FY 12 to
FY18 the Consumption of cement
is 92.52 and 151.26. which is
around 1.5 higher than the
previous

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 About the UltraTech Cement

• UTCL is an India cement company and India’s largest exporter of cement and
manufacturer which is based in Mumbai, India.

• The Company has an installed capacity of 93 MTPA of grey cement.

• UTCL has 18 integrated plants, 1 clinkerisation plant, 25 grinding units and 7

bulk terminals.

• It has Asia’s biggest cement plant ‘Vikram Cement Works’ in Jawad, India.

• Its operations span across India, UAE, Bahrain, Bangladesh and Shrilanka.

• It has total 19,681 employees

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 Literature Review
• According to Mohan Mehra The analysis clearly demonstrates that sudden surge in the price of the

cement is neither due to the demand – supply nor a sudden increment in the cost of producing cement.

• CAR report reasons out that the demand for cement is directly linked with the economic growth of the
country. With the National GDP expected to grow at seven to eight percent and the long run demand
elasticity of cement with respect to GDP being estimated to be 1.4%.

• Arora and Sarkar observed that the boom in the real estate and construction industry in India has caused
for a sudden and sharp increase in the price of the cement to the extent of price increment as high as 17%
in a single year. Collusive behavior of cartel refers to the illegal behaviour of firms within an industry
towards price rise.

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Problem Identification

What is the problem? What I have Done?

Any investors should know the current In this research report I have compared
position of the company before investing in financial statements of UltraTech Cement
it. and its three direct competitors.
They should also know some basic things It includes….
like… Standalone Financial Statements.
- What They Do? Consolidated Financial Statements.
- P/E Ratio Change in Equity Share Capital.
- How much Dividend it pays? Comparison of Ratio Analysis.

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 Research Methodology
• Research Objectives :
- To know the current position of UltraTech Cement in the Market
- To know the current status of cement industry in India.
- To study and research about UltraTech Cement
- To present the suggestions and findings to the company.

• Data Source :
- In this research report we have used secondary data which is published by the
companies itself, financial websites, annual report and blogs. We have used all the
company’s annual report of 2017-18.

• Research Instrument :
- We have asked question to UltraTech’s two executives were both open ended
and subjective questions and also used annual report as on year 2017-18 of all the
four companies for the financial data comparison and analysis.
• Sample Size :
- We have selected a sample of four company from the Indian cement industry
which is UltraTech, ACC, Ambuja and Binani.

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 Data Analysis and interpretation

Balance Sheet
Comparison
The graph shows the perfect
comparison of Consolidated
Balance Sheet of all this four
companies. And the result
found that UltraTech Cement
has a higher total equity and
liabilities than its compatitors.

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Profit & Loss
Account
This graph shows the cosolidated
profit and loss account of all
company. So, from this graph we
can find the Ambuja Cement has
highest profit than its
competitors.

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Cash Flow
Statement
This graph shows the results of
company’s cash and cash
equivalents at the end of the
year. So, the ambuja cement
has high cash and cash
equivalents than its
competitors.

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Ratio Analysis

Current ratio, also known as liquidity

ratio and working capital ratio, shows
the proportion of current assets of a
business in relation to its current
liabilities. ACC has CR is higher than
UTCL which shows the good sign of the
firm.

The Debt to Equity ratio is a financial,

liquidity ratio that compares a
company’s total debt to total equity.
The debt to equity ratio shows the
percentage of company financing that
comes from creditors and investors. A
higher debt to equity ratio indicates
that more creditor financing (bank
loans) is used than investor financing
(shareholders).

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 Ratio Analysis
The Quick ratio is an indicator of a
company’s short-term liquidity, and
measures a company’s ability to meet
its short-term obligations with its most
liquid assets. UTCL has QR 1.31 which is
higher than its competitors.

ROE is a profitability ratio that

measures the ability of a firm to
generate profits from its shareholders
investments in the company. So a
return on 1 means that every dollar of
common stockholders’ equity
generates 1 dollar of net income.

P/E ratio is a market prospect ratio

that calculates the market value of a
stock relative to its earnings by
comparing the market price per share
by the earnings per share.

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 Ratio Comparison

In this Statistical calculation I have calculated Mean, Standard Deviation and Coefficient of Variance of the above given ratios
of all the companies. Through this information now we can easily take a decision about the stock and also we can compare
one particular company with other. UTCL has high risk than its competitors with respect to current ratio.

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 Findings

• In this research we have found that the UltraTech Cement company has
market share 26.08% in 2017 – 18 which is higher than its direct competitors.
• Due to increase in total consumption of cement the growth rate of cement
usage is also increase, the current average growth rate is 7%.
• Capacity utilization of UltraTech Cement is increasing year by year. So, it
indicates good sign for the company.
•In our country taxes and government levies on cement are high compared to
countries in Asia pacific region.
• High Government levies and inadequate facility at ports and border points
make UTCL uncompetitive in the foreign market.
•UTCL has been facing a chronic problem of insufficient availability of the
main fuel coal, driving the manufacturer to use of alternatives at steep cost.

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Conclusion & Recommendation
• The Cement industry as a whole is not yet on a sustainable path in the
dimensions of triple bottom line which is Society, Economy and Ecology.

• This research shows the total structure and market share of all the four cement
companies. And UTCL is on the top of the list of Top 10 Cement companies in
India.

• UltraTech Cement Company has rank 56 on the list of ‘Fortune 500 Companies’.
And no one its competitors are there on this list.

• From the above research we have found that there are huge demand of cement
in India, but the supply is not increasing as per the demand.

• Govt. should take certain actions to control the price of cement in the country.

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 Limitations

• There may be variation in data collected from various websites and

sources.
• We have collected and used data from secondary sources. So, there are
some chances of error.
• Accuracy of finding is not exactly the opinion of whole region.
• All collected data are checked and validated latest on 27-07-2018.

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References
◂ www.ultratechcement.com
◂www.acccement.com
◂www.ambujacement.com
◂www.binanicement.com
◂www.moneycontrol.com
◂www.economictimes.com
◂www.bloomberg.com
◂www.wikipedia.com
◂www.bloombergquint.com
◂www.edelweiss.com
◂www.ibef.otg

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