BWI: UltraTech Cement Limited Announces Results for the Quarter Ended 31st December, 2008

Press release from Business Wire India
Source: UltraTech Cement Limited
Monday, January 19, 2009 04:36 PM IST (11:06 AM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Construction, Financial Analyst, Heavy industries, Major diversified industrial groups, Stock exchanges
Release no: 18993
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UltraTech Cement Limited Announces Results for the Quarter Ended 31st December, 2008


Mumbai, Maharashtra, India, Monday, January 19, 2009 -- (Business Wire India) -- UltraTech Cement Limited, an Aditya Birla Group Company, today announced its unaudited financial results for the quarter ended 31st December, 2008.

Financials

Net Sales at Rs.1,631 crores is up by 18% compared to Q3FY08 (Rs. 1,380 crores). Profit before Interest, Depreciation and Tax at Rs. 451 crores (Rs. 490 crores) and Profit after Tax at Rs. 238 crores (Rs. 279 crores) were lower by 8% and 15% respectively. Cash Profit remained flat at Rs. 358 crores (Rs.353 crores).

The Company has a strong balance sheet with debt: equity ratio of 0.5 and interest cover of more than 10 times.

The Company produced 3.98 MMT (3.60 MMT) of cement in Q3FY09 registering a growth of 11% YoY.

Domestic cement sales volume at 3.80 MMT (3.40 MMT) registered a growth of 12%. Exports were lower at 0.69 MMT (0.79 MMT). Total sales volume increased by 6% from 4.32 MMT in Q3FY08 to 4.57 MMT during the quarter under review.

Domestic realisation remained flat sequentially. Though fuel prices started softening from November, 2008, its real impact will be reflected in Q4FY09. During Q3FY09, as the Company consumed fuel out of inventory and order in pipeline, the variable cost was up by 35%.

Capex

All Project capex viz. the expansion at Andhra Pradesh Cement Works (APCW), the grinding Unit at Ginigera in Karnataka and installation of captive Thermal Power Plants across the Company's Units will be fully operational during FY09.

Upon the commissioning at APCW and Ginigera, the total capacity of the Company will stand increased from 18.2 MMT to 23.1 MMT. With the commissioning of the new TPPs, the Company will have access to 271 MWs of captive power which will cater to around 80% of its power requirements.

Outlook

The government has taken several steps for improving liquidity in the system. It has announced two stimulus packages to boost the sagging economy. Despite this, funding continues to be a problem in the real estate and infrastructure sectors. There is a slowdown in construction activities and corporate capital investments, leading to slackening in demand for cement. The sector is now expected to grow in line with GDP.

Additionally, the likely release of around 100 million tonnes capacity in a phased manner over the next two years coincides with slower economic growth. This will put pressure on sales realization and margins in FY10.

The Company will continue to focus on sustaining plant performance and optimising efficiencies.

To view the press release along with the tables and unaudited financial results, please click on the links given below:

Press Release

Unaudited Results

For picture(s)/data to illustrate this release click below:

http://www.BusinessWireIndia.com/attachments/Press_Release(30).doc
Press_Release(30).doc
http://www.BusinessWireIndia.com/attachments/Unaudited_Results.pdf
Unaudited_Results.pdf


CONTACT DETAILS
Dr. Pragnya Ram, UltraTech Cement Limited, +91 (022) 66525160, pragnya.ram@adityabirla.com

KEYWORDS
CONSUMER, ECONOMY, BANKING, CONSTRUCTION, Financial Analyst, HEAVY INDUSTRIES, GROUPS, STOCK EXCHANGES, 532538.BO, ULTRACEMCO.NS

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