INDIA: Ultratech Cement

Profits crash

Ultratech's performance for the third quarter ended December 2010 reflects the 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 December 2010, Net Sales grew to Rs.3715 crore compared to Rs. 3682 crore. PBIDT fell to Rs. 768 crore against Rs. 1019 crore, PBIT falling to Rs. 549 crore compared to Rs. 815 crore, similarly PAT fell to Rs. 319 crore against Rs.499 crore.

Based on re-casted figures, for the nine month period ended December 2010, Net Sales fell to Rs. 8720 crore against Rs. 9236 crore. PBIT also declined to Rs. 1160 crore compared to Rs. 2461 crore.

The Company produced 9.30MMT (8.99 MMT) of grey cement during the quarter. The combined domestic cement and clinker sales of grey cement was 9.16 MMT (9.05 MMT).

During the quarter the Company produced 1.47 LMT (1.38 LMT) of white cement. It sold 1.44 LMT (1.30 LMT) white cement and 0.81 LMT (0.60 LMT) wall care putty.

Capital Expenditure

The Company has a capital outlay of around Rs10000 crores to be spent over the next three years. These include setting up of additional clinkerisation plants at Chhattisgarh and Karnataka along with grinding units and bulk packaging terminals across various states. To take these projects forward, orders for major equipment have been placed. Consequent to these expansions, the total cement capacity addition will be 9.2 mtpa, which will be operational from early FY14.

The ESOS compensation committee has allotted 11,580 equity shares of Rs. 10 each of the Company to option grantees pursuant to the exercise of stock options under the Company's Employee Stock Option Scheme - 2006. As a result of such allotment, the paid-up Equity Share Capital of the Company increased from 274,021,468 equity shares of Rs. 10 each to 274,033,048 equity shares of Rs. 10/- each.