UltraTech announces financial results for the quarter and year ended 31 March 2007

1st May, 2007

21 April 2007

UltraTech announces financial results for the quarter and year ended 31 March 2007

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UltraTech Cement Limited, an Aditya Birla Group company today announced its financial results for the quarter and year ended 31 March 2007.

Financials — Q4FY07
For the quarter ended 31 March 2007 the company attained net revenues of Rs.1,466 crore (Rs.1,060 crore). After providing for interest at Rs.20 crore (Rs. 22 crore), depreciation at Rs.60 crore (Rs. 60 crore) and tax at Rs.116 crore (Rs.11 crore), the profit after tax stood at Rs. 232 crore (Rs.132 crore).

The company produced 3.81 mmt of clinker (3.47 mmt) and 4.17 mmt of cement (4.01 mmt). The capacity utilisation stood at 113 per cent compared to 102 per cent in the corresponding period of the previous year.

Aggregate sales volumes was 5.04 mmt (4.63 mmt) up by 9 per cent. Domestic sales volume grew by 6 per cent from 3.93 mmt to 4.18 mmt, registering a growth of 6 per cent. Aggregate exports rose by 23 per cent from 0.70 mmt to 0.86 mmt.

Financials — FY07
For the year ended 31 March 2007 net revenues were Rs.4,911crore (Rs.3,299 crore). After providing for interest at Rs.87 crore (Rs.90 crore), depreciation at Rs.226 crore (Rs.216 crore) and tax at Rs.384 crore (Rs.56 crore), the profit after tax stood at Rs.782 crore (Rs.230 crore).

During the year the company produced 14.22 mmt of clinker (13.36 mmt) and 14.63 mmt of cement (13.70 mmt). Its effective capacity utilisation was 101 per cent compared to 88 per cent during the previous year.

Aggregate sales volumes for FY07 at 17.67 mmt (15.70 mmt) was up by 13 per cent. Domestic sales volume which constituted around 80 per cent of the aggregate sales volume was up from 13.12 mmt in FY06 to 14.20 mmt in FY07. Its exports grew from 2.57 mmt in FY06 to 3.46 mmt in FY07.

The share of blended cement in the domestic market grew from 51 per cent in FY06 to 60 per cent in FY07.

The company's performance during Q4FY07 and FY07 was driven primarily by improved capacity utilisation, growth in sales volume, better realisation together with a higher share of blended cement.

Variable cost increased by over 7 per cent during FY07, and around 11 per cent for Q4FY07. This was mainly on account of an escalation in the cost of raw materials, consequent to mounting freight charges and the cost of imported coal.

Dividend
The board of directors had, in March 2007, declared an interim dividend of 40 per cent, aggregating to Rs.49.8 crore. Together with the corporate dividend tax of Rs.7.0 crore, the total payout was Rs.56.8 crore. The board, at its meeting, has decided not to recommend a final dividend and to treat the interim dividend as final dividend.

Capex
The capex plans announced by the company are on track. The captive power plants being set up at the company's units in Andhra Pradesh, Chattisgarh and Gujarat will be commissioned during calendar year 2008. Upon commissioning these would result in lowering of power costs. The enhancement of capacity at the unit in Andhra Pradesh, expected to be commissioned in FY08, will cater to the growing markets in South India.

Ready mix concrete is likely to see substantial growth in the years to come. Recognising the opportunities that this business will offer, the company is setting up ready mix concrete plants in various places in the country.

The company is committed to reducing CO2 emissions in its manufacturing process. Towards this end, a project at its unit in Andhra Pradesh for optimum utilisation of clinker by increasing blended cement has been granted CERs by the UNFCC. Another project for utilising the clinker cooler waste gases to generate power has been completed. This project is in the final stages of validation and verification by UNFCC for grant of CERs.

Outlook
Demand is expected to grow by 9 per cent linked to GDP. The availability and rising prices of quality coal is a concern area. The addition of new capacities is likely to result in a surplus scenario in FY09. The industry is moving towards a structural shift — from selling cement to building materials. Against this background, the company's focus will be on sustaining plant performance, improving service standards and timely commissioning of projects.

For more information, contact:
Dr. Pragnya Ram
Group Executive President
Corporate Communications & CSR
Aditya Birla Management Corporation Private Limited
Tel: 91-22-6652 5000 / 2499 5000
Fax: 91-22-6652 5741/ 42
Email: pragnya.ram@adityabirla.com