This story first appeared in DNA Money edition on Tuesday, July 30, 2013.
UltraTech Cements, the country’s biggest cement producer, posted a 13.5% on-year decline in its first quarter (Q1, April-June) net profit at Rs 673 crore, due to slowdown in home building and infrastructure projects.
The Aditya Birla group company’s Q1 net sales fell 2.2% on-year to Rs 4,958 crore. Net turnover last fiscal rose 10% on-year to Rs 20,018 crore, while net profit stood at Rs 2,655 crore (Rs 2,446 crore the previous fiscal).
Kumar Mangalam Birla (pictured), chairman of the group, said business environment continues to be challenging. “Despite adverse market conditions, the company has done well. We foresee cement demand growth to be about 6% this fiscal. However, it is likely to be over 8% in the long term.”
Addressing shareholders at UltraTech’s 13th annual general meeting, Birla said last week’s Holcim-Ambuja-ACC will not intensify competition. For, Ambuja-ACC can together produce 58 million tonne per annum (mtpa) while UltraTech’s capacity is just a tad lower at 53.90 mtpa, including 3 mtpa overseas.
UltraTech’s CFO K C Birla said while April and May saw a 5.8% growth in demand, June saw only around 1% growth.
UltraTech has earmarked Rs 13,700 crore for capital expenditure (capex) this fiscal, to be funded through internal accruals and debt in equal proportion. It also allocated Rs 2,100 crore for setting up grinding units, ready mix concrete plants and for modernisation. The company plans to increase cement manufacturing capacity by 10 million tonne to 64.45 million tonne by 2015.
UltraTech Cements, the country’s biggest cement producer, posted a 13.5% on-year decline in its first quarter (Q1, April-June) net profit at Rs 673 crore, due to slowdown in home building and infrastructure projects.
The Aditya Birla group company’s Q1 net sales fell 2.2% on-year to Rs 4,958 crore. Net turnover last fiscal rose 10% on-year to Rs 20,018 crore, while net profit stood at Rs 2,655 crore (Rs 2,446 crore the previous fiscal).
Kumar Mangalam Birla (pictured), chairman of the group, said business environment continues to be challenging. “Despite adverse market conditions, the company has done well. We foresee cement demand growth to be about 6% this fiscal. However, it is likely to be over 8% in the long term.”
Addressing shareholders at UltraTech’s 13th annual general meeting, Birla said last week’s Holcim-Ambuja-ACC will not intensify competition. For, Ambuja-ACC can together produce 58 million tonne per annum (mtpa) while UltraTech’s capacity is just a tad lower at 53.90 mtpa, including 3 mtpa overseas.
UltraTech’s CFO K C Birla said while April and May saw a 5.8% growth in demand, June saw only around 1% growth.
UltraTech has earmarked Rs 13,700 crore for capital expenditure (capex) this fiscal, to be funded through internal accruals and debt in equal proportion. It also allocated Rs 2,100 crore for setting up grinding units, ready mix concrete plants and for modernisation. The company plans to increase cement manufacturing capacity by 10 million tonne to 64.45 million tonne by 2015.
No comments:
Post a Comment