Financial results for the quarter ended 31st dec, 2014

1st February, 2015

Mumbai, 23rd January, 2015
UltraTech Cement Limited – Financial Results for the Quarter ended 31st December, 2014 & Acquisition of Madhya Pradesh Cement Units of Jaiprakash Associates

Rs. in crores

UltraTech Cement Limited, an Aditya Birla Group Company, today announced its unaudited financial results for the quarter ended 31st December, 2014.

Net Sales at Rs. 5,490 crores have increased by 15% over the same period of the previous year (Rs. 4,783 crores). Profit before Interest, Depreciation and Tax is Rs. 990 crores and Profit after Tax is Rs. 364 crores vis-a-vis Rs. 864 crores and Rs. 370 crores respectively, in the corresponding period of the previous year. For the first nine months, revenues have jumped 16% and PAT is up at Rs. 1,400 crores, an increase of 7%.

The combined domestic cement and clinker sales was 10.98 MnT (9.98 MnT) and 3.16 LmT (2.89 LmT) for white cement and wall care putty.

On a sequential basis, prices witnessed a downward trend. However, the on-going cost optimisation measures helped in containing costs despite the continuing increase in price of input material and logistics cost.

On a consolidated basis, Net Sales stood at Rs. 5,835 crores as compared to Rs. 5,137 crores in the corresponding period of the previous year. Profit before Interest, Depreciation and Tax is Rs. 1,058 crores and Profit after Tax is Rs. 401 crores vis-a-vis Rs. 928 crores and Rs. 399 crores respectively.

Acquisition of Cement Units of Jaiprakash Associates

The Board had earlier approved the acquisition of cement business of Jaiprakash Associates Limited (JAL) situated at Bela and Sidhi in Madhya Pradesh, having a capacity of 4.9 mtpa together with 180 MW TPP.

The Company and JAL have entered into a Definitive Agreement for this acquisition which will propel the Company’s cement capacity in India from ~60 mtpa to ~65 mtpa. With the Company’s current projects underway, the capacity in India will stand raised to ~71 mtpa in 2016.

In exchange of the above business, the Company shall issue non-convertible debentures worth Rs. 4,538 crores and non-convertible cumulative redeemable preference shares worth Rs. 10 lacs. As part of the business, the Company shall take over Rs. 626.50 crores of debt and negative working capital of Rs. 160.50 crores.

The transaction with JAL is subject to the approval of shareholders and creditors, sanction of the Scheme of Arrangement by the High Courts, approval of the Competition Commission of India and other statutory approvals. It is anticipated that the transaction will close in 7 to 9 months. Standard Chartered Bank and Moelis & Company India Pvt. Ltd. are the Transaction Advisors and the Valuation was carried out by Bansi S. Mehta & Co., Chartered Accountants. J. M. Financial Institutional Securities Limited provided the Independent Fairness Opinion to the Company. Amarchand & Mangaldas & Suresh A. Shroff & Co. is the Legal Advisor.

Outlook

The business outlook continues to remain challenging. Demand growth in the long term is likely to be around 8%. The key demand drivers will continue to be housing and infrastructure spends.