UltraTech reports excellent results for quarter ended 31 December 2006

1st February, 2007

18 January 2006

UltraTech reports excellent results for quarter ended 31 December 2006

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UltraTech Cement Limited, an Aditya Birla Group Company, today announced its unaudited financial results for the quarter ended 31 December 2006. The quarter under review witnessed continued improvement in performance on the back of higher volumes and capacity utilisation; management efforts to neutralise escalating energy costs per tonne and better domestic and export realisations.

Net sales at Rs.1,260 crore was up 60 per cent compared to the corresponding period in the previous year (Rs.789 crore). Operating profit was Rs.397 crore (Rs.117 crore). After providing for interest at Rs.20 crore (Rs.23 crore), depreciation at Rs.57 crore (Rs.51 crore) and tax at Rs.107 crore (Rs.19 crore), the profit after tax stood at Rs.212 crore (Rs.24 crore), which is over eight times compared to the corresponding quarter in Q3FY06.

The surge in turnover is attributed to the increase in sales volumes which grew by 15 per cent from 39.24 LMT in Q3FY06 to 44.96 LMT during the quarter and improved domestic sales realisation by around 50 per cent.

Increase in variable cost per tonne was restricted to 5 per cent through change in power sources and better consumption norms, despite an increase in imported coal prices as well as reduced availability against domestic linkages.

During the quarter the company produced 36.36 LMT of clinker (35.26 LMT) and 35.87 LMT of cement (33.23 LMT). Effective cement capacity utilisation improved from 88 per cent to 103 per cent.

Work on setting up captive power plants at the company's units in Gujarat, Chhatisgarh and Andhra Pradesh is progressing on schedule. These are expected to be commissioned during 2008. Upon commissioning, the power costs will reduce substantially. Further, work on increasing capacity at the company's unit in Andhra Pradesh is also on track. The enhanced capacity will meet the growing demand in the lucrative markets in South India.

During the quarter, the Board approved the formulating of an employee stock option scheme. The company's shareholders have also granted their approval for formulating the scheme and granting, offering and issuing in one or more tranches, not more than 375,000 equity shares of Rs.10 each, representing 0.30 per cent of the equity share capital of the company to eligible employees.

Given that industry growth is expected to be around 10 per cent, linked to GDP growth, the outlook for the company seems promising. 

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