UltraTech Cement announces financial Results for year ended 31 March 2014

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UltraTech Cement, an Aditya Birla Group company, today announced its financial results for the year ended 31 March 2014.

Financials – Q4FY14
Net sales stood at Rs.5,832 crore as compared to Rs.5,391 crore in the corresponding period of the previous year. Profit before interest, depreciation and tax (PBIDT) is Rs.1,329 crore as againstRs.1,383 crore. Profit after Tax (PAT) is Rs.838 crore (including tax provision reversal related to earlier years - Rs.95.56 crore) compared to Rs.726 crore in FY13.

The combined cement and clinker sales of grey cement is 12.18 MMT (11.13 MMT) up by 9 per cent , while for white cement and wall care putty it is 3.29 LMT (2.92 LMT).

Financials – FY14
Net sales stood at Rs.20,078 crore vis-à-vis Rs.20,023 crore in the corresponding period of the previous year. Profit before interest, depreciation and tax is Rs.4,147 crore as against Rs.4,980 crore. Profit after Tax is Rs.2,144 crore (including tax provision reversal related to earlier years - Rs.95.56 crore) compared to Rs.2,655 crore in FY13.

The combined cement and clinker sales of grey cement is 41.47 MMT (40.65 MMT), while for white cement and wall care putty it is 11.42 LMT (10.18 LMT).

The year witnessed continuing pressure on input and logistics costs, given the increase in railway freight and a continuous hike in diesel prices. Although there was some relief on account of softening in prices of imported coal, the impact was negated by the depreciation in rupee.

Optimisation of fuel mix and other initiatives helped in maintaining costs almost at the previous year levels.

Dividend
The Board of Directors at their meeting held today recommended a dividend of 90 per cent, at the rate of Rs.9 per share of face value of Rs.10 each aggregating Rs.246.82 crore. The company will absorb the Corporate Tax on dividend amounting to Rs.41.95 crore, resulting in a total payout of Rs.288.77 crore.

Corporate development
The acquisition of the Gujarat Cement Unit of Jaypee Cement Corporation Limited ("JCCL"), comprising an integrated cement unit at Sewagram and grinding unit at Wanakbori, at an enterprise value of Rs.3,800 crore, besides the actual net working capital at closing ("the Unit"), has been approved by the shareholders and creditors of both JCCL and the company and also the Hon'ble Bombay High Court and the Hon'ble Allahabad High Court. The Competition Commission of India had earlier approved the proposed combination. The scheme is now subject to the final approval of the Securities and Exchange Board of India.

Capex

During the year the company has commissioned –

• Clinkerisation plant of 3.30 mtpa, 25 MW TPP and 1.45 mtpa cement plant at Rajashree Cement in Karnataka;
• 1.6 mtpa cement mill at Jharsuguda in Odisha;
• 25 MW TPP in Andhra Pradesh;
• 30 MW TPP in Rawan in Chhattisgarh and
• 6.5 MW waste heat recovery system at Awarpur in Maharashtra.

With the commissioning of these units the cement capacity of the company stands raised to 53.95 mtpa.

The company has earmarked around Rs.10,000 crore to be incurred in setting up the remaining grinding units, clinkerisation plants, cement terminals and other capex in the current round of expansions. These are likely to be commissioned in a phased manner by 2015. A judicious mix of internal accruals and borrowings has been used for funding the projects.

Outlook
The long-term cement demand is likely to grow over 8 per cent in line with the GDP growth. The value drivers for growth will continue to be housing demand and infrastructure development.