UltraTech full-year hit by operational costs

UltraTech Cement, an Aditya Birla Group company, today announced its financial results for the year ended 31 March 2014.

Full-year net sales stood at INR58.32bn compared to INR53.91bn in the corresponding period of the previous year. Profit before interest, depreciation and tax was INR13.29bn compared to INR13.83bn. Profit after tax was INR8.38bn against INR7.26bn in FY13. Combined cement and clinker sales were up nine per cent YoY to 12.18Mt (previous year: 11.13Mt).

"The year witnessed continuing pressure on input and logistics costs, given the increase in railway freight and a continuous hike in diesel prices. Although there was some relief on account of softening in prices of imported coal, the impact was negated by the depreciation in rupee." UltraTech said in a statement.

Commissioned projects
During the year, the company commissioned a 3.3Mta clinker plant and 1.45Mta cement works at Rajashree Cement, Karnataka state. It also commissioned a 1.6Mta cement mill at Jharsuguda in Odisha. With the commissioning of these units the company lifted cement capacity to 53.95Mta. In addition, it commissioned three thermal power plants (at Karnataka, Andhra Pradesh and Chhattisgarh) as well as 6.5MW waste heat recovery system at Awarpur in Maharashtra.

India's largest cement producer has earmarked around INR100bn to establish grinding units, clinker plants, cement terminals and other capex in the current round of expansions. These are likely to be commissioned in a phased manner by 2015. A judicious mix of internal accruals and borrowings has been used for funding the projects.

Growth outlook
In terms of the outlook for demand in India, UltraTech Cement expects eight per cent growth in the long-term, in line with GDP growth. The main drivers will continue to be housing demand and infrastructure development, it added.