UltraTech's performance for the second quarter reflects the first financial results post the amalgamation of Samruddhi Cement Limited with the Company. The results include the performance of Samruddhi with effect from 1st July, 2010 which was the Appointed Date for the amalgamation.
The results for the corresponding Quarter of FY10 have been re-casted to include Samruddhi's performance for like-for-like comparison.
Based on re-casted figures, for quarter ended September 2010, Net Sales fell 9% to Rs.3,215 crore. Profit before Interest, Depreciation and Tax fell 60% to Rs. 476 crore, while Profit after Tax is crashed 82% to Rs. 116 crore.
The Company produced 8.61MMT (8.36 MMT) of grey cement. The combined cement and clinker sales of grey cement was 9.10 MMT (8.64) MMT.
A subdued demand on account of monsoons, capacity additions, fall in realisation coupled with increase in costs has impaired the Company's performance. The prices of imported coal rose from US$ 76/Mt to US$ 110/Mt substantially escalating the Company's energy cost. These factors have put the Company's margins under pressure.
The Scheme of Amalgamation (the Scheme) of Samruddhi Cement Limited (Samruddhi) with the Company has been sanctioned by the Hon'ble Bombay High Court on 11/06/2010 and by the Hon'ble Gujarat High Court on 01/07/2010. The Scheme became effective from 01/08/2010 and is operative from the Appointed Date i.e. 01/07/2010. The results for the period ended 30/09/2010 are inclusive of Samruddhi from the Appointed date i.e. 01/07/2010.
Upon effectiveness of the Scheme, the authorised Share Capital of the Company increased to ` 2,800,000,000, consisting of 280,000,000 equity shares of ` 10/- each.
In terms of the Scheme, shareholders of Samruddhi have been allotted 149,533,469 equity shares of ` 10/- each of the Company as fully paid-up in the ratio of 4 (four) equity shares of the Company of face value ` 10/- each fully paid-up for every 7 (seven) equity shares of Samruddhi of face value ` 5/- each fully paid-up.
The ESOS Compensation Committee has on 07/09/2010 allotted 920 equity shares of ` 10/- each of the Company to option grantees pursuant to the exercise of stock options under the Company's Employee Stock Option Scheme - 2006.
The paid-up equity share capital of the Company increased from 124,487,079 equity shares of ` 10/- each to 274,021,468 equity shares of ` 10/- each as a result of the allotment of equity shares in terms of the Scheme of Amalgamation (the Scheme) and exercise of stock options under the Company's Employees Stock Option Scheme - 2006.
The Company's wholly-owned subsidiary 'UltraTech Cement Middle East Investments Limited' has completed the acquisition of ETA Star Cement and has acquired management control of its operations in the UAE, Bahrain and Bangladesh.
Directors
The Board at its meeting held today inducted Mr. Adesh Gupta, Whole-time Director and CFO of Grasim Industries Limited as an additional director of the Company with immediate effect.
Outlook
The demand for cement is expected to grow around 10% on the back of a good monsoon and the government's initiatives to boost rural demand, infrastructure and housing. These aspects augur well for the Company.
Ultratech Cement: Re-casted Results
| Quarter ended | |||
| 30thSept,2010 | 30thSept,2009 (LFL) | 30thSept,2009 | |
| Net Sales | 3,215 | 3,538 | 1,541 |
| PBIDT | 476 | 1,184 | 501 |
| PAT | 116 | 631 | 251 |
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