UltraTech Cement Limited

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BSE Code: 532538       NSE Code: ULTRACEMCO

Business Profile
Business Profile
UltraTech Cement (ULTRATECH), a subsidiary of Grasim, manufactures and markets portland cement and ready mix concrete. An Aditya Birla Group Company, it was incorporated on Aug. 24, 2000 and got its current name on Oct. 11, 2004.

The company manufactures ordinary portland cement, portland blast furnace slag cement, portland pozzolana cement. It has five integrated plants, five grinding units and three terminals in India and Sri Lanka with a total aggregated capacity of 17 million TPA. The company has earmarked over INR 26 billion for its various capex plans. Of this, around INR 11 billion will be spent in setting up captive power plants in Andhra Pradesh and Gujarat to be commissioned by FY08 and at Chattisgarh by the first quarter of FY09. This would meet around 80% of the company`s power requirements. The Andhra Pradesh plant capacity is being augmented by 4 MTPA with a grinding unit in Karnataka at an expenditure of around INR 11 billion expected to be commissioned by March 2008.

An ISO 9001, ISO 14001 and OHSAS 18001 certified company, Ultratech has ventured into ready mix concrete. It has begun setting up ready mix concrete plants at different locations across the country. The company ahs also bagged several awards for its performance. The recent one includes the state and zonal level I prize for Overall Performance in Mines Safety for 2004-2005. Subsidiaries of the company include Dakshin Cements and UltraTech Ceylinco. The company is India`s largest exporter of cement clinker and has exported 3.46 million metric tons of cement and clinker in FY07 around Indian Ocean, Africa, Europe, and the Middle East.

The registered office of the company is located at B Wing, Ahura Centre, 2nd Floor, Mahakali Caves Road, Andheri (E), Mumbai-400093.

The company announced a sharp drop in standalone net profit for the quarter ended December 2008. During the quarter, the profit of the company declined 14.72% to Rs 2,383.60 million from Rs 2,794.90 million in the same quarter previous year. Net sales for the quarter rose 18.45% to Rs 16,371.40 million, while total income for the quarter rose 17.75% to Rs 16,511.60 million, when compared with the prior year period. It reported earnings of Rs 19.15 a share during the quarter, registering 14.70% decline over previous year period.

Future Plans
The company plans to install 4 million tons per annum capacity expansion at its Tadipatri plant in Andhra Pradesh. It will be fully operational in 2008-2009. This is inclusive of setting up of a 1.3 million tons per annum split grinding unit and a 46 MW captive thermal power plant. It has plans to add further capacity amounting to at least two million tons to retain its market share. Ready mix concrete is likely to see substantial growth in the coming years. Identifying the opportunity, the company has commenced setting up of ready mix concrete plants at various places in the country. The company has earmarked a CAPEX of around Rs 14.24 billion to be spent over the next three years. Of this, Rs 8.44 billion shall be spent on the installation of captive power plants at its units in Gujarat and Chhatisgarh. The company shall add another Rs 12.74 billion to cater to the growing demand of cement and grow its market share in South India.

Ultratech Cement Q2 FY10 Results Update     Source: Ventura Securities Ltd
Other Information
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