UltraTech Cement Share Prices
UltraTech Cement Ltd.’s profit in the quarter ended September missed forecast weighed down by rising energy costs and a depreciating rupee.Net profit fell 9.3 % YoY to Rs.391 crore in the July-September period. Revenue of the Aditya Birla group flagship company rose 21 % to Rs.7,771.3 crore. Analysts had expected a top line of Rs 7,873 crore.
The company’s adjusted operational performance, however, was in line with cement industry and financial analysts’ estimates. Earnings before interest, tax, depreciation, and amortization declined 4.3 % to Rs. 1,293 crore.
Energy costs, which account for a third of the company’s overall expenses, rose 19 % YoY to Rs.1,099 per tonne during the period. Prices of pet coke, a key raw material in cement making, also increased close to 20 %. Overall, the cost of raw materials rose 5 % on a yearly basis to Rs. 503 a tonne during the quarter.
The Scheme of Arrangement to merge the cement business of Century Textiles and Industries is awaiting approval from shareholders, the National Company Law Tribunal and other regulatory authorities. It has been cleared by stock exchanges and Competition Commission of India.
Following approvals, UltraTech Cement will issue one equity share for every eight held by Century Textiles shareholders.
Century will demerge its cement business consisting of three integrated cement units in Madhya Pradesh, Chhattisgarh and Maharashtra and a grinding unit in West Bengal and merge it with Ultratech. This will take, UltraTech Cement’s capacity to 111.1 mtpa.
Having integrated 21.2 mtpa of JP Cement capacity acquired last July, UltraTech proposes to invest in Waste Heat Recovery Systems at these plants.
