UltraTech Cement Recent Acquisition

UltraTech Cement, a leading global cement producer with a capacity of 126.75 MTPA, has acquired 70% of Duqm Cement Project International, LLC through its subsidiary, UltraTech Cement Middle East Investments Limited, in a share sale and purchase agreement with Seven Seas Company LLC. The acquisition will make UltraTech the majority stakeholder in Duqm and is set to be completed in 90 days, through a cash consideration of USD 2.25 million. Duqm Cement Project International, based in Oman and operating in the limestone mining industry, was incorporated in 2017 and has not reported any turnover in the past three years.

UltraTech Cement Results

 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.

Grasim Industries Limited

Aditya Birla Group's Grasim Industries Posts Good Q2 Results

Grasim Industries Limited, a group firm of the Aditya Birla Group posted its Q2 results. Grasim Industries is involved in the manufacture of Viscose Staple Fibre (VSF), which is used in garments, cement, and chemicals. Grasim's cement subsidiary is UltraTech Cement.

GIL reported a net profit of Rs.488.50 crore, as against Rs.416.38 crore for the corresponding period a year ago, an increase of 17 %.
GIL reported a consolidated income of Rs.8,392.90 crore, as against Rs.7,943.05 crore for the corresponding period a year ago, an increase of 6 %.
GIL reported a consolidated Ebitda (earnings before interest, tax, depreciation and amortization) of Rs.1,485 crore, as against Rs.1,277 crore for the corresponding period a year ago, an increase of 16 %.
GIL reported a stand-alone net profit of Rs.338.24 crore, as against Rs.299.41 crore for the corresponding period a year ago, an increase of 13 %.

Grasim's cement subsidiary UltraTech Cement reported a 4 % growth in cement revenues and cement sales volume was also higher at 11.4 MT against 10.9 MT last year. With the commissioning of cement grinding units of 1.6 MTPA each in the states of Haryana and West Bengal, the company's cement capacity now stands at a massive 67.7 MTPA.