The Aditya Birla Group company Ultratech Cement posted disappointing results amidst cost pressure and railway freight hike. It commits to expansion of its Rajasthan plant at a cost of Rs2,000 crore
UltraTech Cement Company’s net Sales stood at Rs5,389 crore for the quarter ended 31 March 2013, as compared to Rs5,334 crore in the corresponding period of the previous year, a marginal increase of 1.03% year-on-year (y-o-y). However, net profit declined by 16.26% for the quarter ended 31 March, from Rs867 crore to Rs726 crore. The poor result was due to continuing pressure on input and logistics costs, given the increase in railway freight and hike in diesel prices though there was some relief on account of softening in prices of imported coal.
The combined cement and clinker sales of grey cement were almost flat at 11.13 MMT, while for white cement it is 1.56 LMT (1.63 LMT). With the commissioning of new cement projects, the cement capacity of the company has increased from 48.75 million metric tonnes to 50.90 million metric tonnes. The clinkerisation plant of 3.30 million tonnes per annum in Karnataka is expected to go on stream in Q1FY14.
The company’s board approved the expansion of capacity at Aditya Cement Works in Rajasthan by 2.9 million metric tonnes, including the setting up of two grinding units. This expansion envisages a capital outlay of around Rs2,000 crore to be funded through a mix of internal accrual and borrowings. The additional facility is expected to be commissioned by March 2015.
The board of directors has recommended a dividend of 90%, at the rate of Rs9 per share of face value of Rs10 each aggregating Rs246.76 crore. The company will absorb the corporate tax on dividend amounting to Rs41.94 crores, resulting in a total payout of Rs288.70 crore.
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