Ultratech accounts for higher export sales

Ultratech accounts for higher export sales
Published: 04 July 2005

UltraTech Cement Ltd a Grasim subsidiary, has an annual capacity of 17Mta. It has five integrated plants (two at Gujarat and one each at Chattisgarh, Maharashtra and Andhra Pradesh), five grinding units (one each at Orissa, Tamil Nadu, West Bengal, Gujarat and Maharashtra), and four terminals - three in India and one in Sri Lanka.

UltraTech Cement is currently the country’s largest exporter of cement and clinker. The Company exports over 3Mta, which is about 47 per cent of the country’s total exports. During FY2005, aggregate sales volume of UTCL including clinker grew by three per cent from 15.1Mt to 15.6Mt. Cement exports were also higher by 32 per cent, largely due to the favourable market conditions in the Middle East region.

During FY2005, UTCL witnessed a 20 per cent growth in net sales on an aggregate basis to Rs.2775.9 crore. Operating margins, however, declined from 14.1 per cent to 12.1 per cent, largely on account of steep rise in power and fuel costs as well as brand transition expenses. The write-off of outstanding deferred expenses of earlier period too impacted the margins.