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Cement; and Grasim acquiring L&Ts cement business, Indian Rayons cement division, and Sri
Digvijay Cements. Foreign cement companies are also picking up stakes in large Indian cement
companies. Swiss cement major Holcim picked up 14.8 percent of the promoters stake in Gujarat
Ambuja Cements Limited (GACL). Holcims acquisition has led to the emergence of two major
groups in the Indian cement industry: the Holcim-ACC-Gujarat Ambuja Cements combine and the
Aditya Birla group through Grasim Industries and UltraTech Cement. Lafarge, the French cementmajor acquired the cement plants of Raymond and Tisco, and L&Ts Ready Mix Concrete (RMC)
business. Italy based Italcementi acquired a stake in the K.K. Birla promoted Zuari Industries
cement plant in Andhra Pradesh, and German cement company Heidelberg Cement entered into an
equal joint venture agreement with S P Lohia Group controlled Indo-Rama Cement.
The above process of mergers and acquisitions facilitated Indian cement industry to acquire
technical capability to produce different types of cement like Ordinary Portland Cement (OPC),
Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well
Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, and White
Cement etc.
Nature of the Industry
Cyclical
Cement industry is cyclical in nature. It is highly sensitive to business cycles as well as broader
economic trends. There is a high degree of correlation between the GDP growth rate and the
growth in cement consumption. When the economy is in boom, the demand of cement increases
due to the development activity in the infrastructure sector, boom in real estate, and corporate
expansion. However, when the economy is in recession, cement industry too faces recession.
Regulated Industry
Cement industry, being a core industry of the country, is vital for the latters development. In
India, the cement industry is highly regulated and cement price is under government control. To
keep cement prices under control the government may take certain measures, which could be a
worrying factor for the industry, especially at a time when raw material prices and freight costs are
shooting through the roof. Recently, there was a steep rise in the cement price; cement price hasalways been a bone of contention between the government and the cement producer. Currently, the
government is exerting pressure on the industry to decrease cement price.
Standardized Technology
In the wake of cement industrys ability to acquire technical capability, cement production is a
standardized and simple process. Technology is not an entry barrier in the cement industry.
Industry does not offer any technological advantage to specific players. It is characterized by a
mature and stable technology with simple, minor improvements taking place over the years. Any
change in the technology can be easily diffused in the industry.
Conglomerations
The domestic cement industry is characterized by the presence of various diversified companies,
which have significant stake in the cement sector. Some of the prominent diversified players
operating in this sector are Grasim Industries, Jaiprakash Industries and Century Textiles.
Diversified conglomerates like the Birla Group and the Singhanias (Raymond, JK Synthetics) have
significant interests in the cement business.
Industry Value Chain
Mining Manufacturing Testing Marketing Distribution
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Mining
The most important raw materials for making cement are limestone, clay and mart. These are
extracted from quarries using heavy machinery. The extracted raw materials are transported to the
crushing installation and then the crushed material is transported for raw material storage. It is
stored in blending beds and homogenized. The desired raw mix of crushed raw material and the
additional component required for the type of cement is done. Roller grinding mills and ball millswill then grind the mixture to a fine powder at the same time as drying it.
Manufacturing
Burning is the most important step in the manufacturing process, which takes place in huge rotary
kilns. At the end of kiln, the raw material is fed either directly or using a pre heater system. Before
reaching a temperature of about 14500C, the raw material is slowly cascaded down the inclined
kiln towards the heat. In this burning zone, a process called clinkering takes place. The clinker
nodules now drop into coolers. Conveyors then take these nodules away to the clinker storage
silos. Electrostatic precipitators clear the kiln to prevent the gas leaving it, to discharge into the
atmosphere. Cement mills use steel balls of various sizes and a small quantity of gypsum to grind
the clinker. A fine powder called cement is then formed. Gypsum is used to control setting times
of cement. The finished cement is then stored in silos. In order to ensure consistence, further
blending takes place at the silos where the cement is stored.Testing
Testing is undertaken right from the supply of raw material till the final product is dispatched.
Every company sets the standard for the quality of the product as also the raw material. Hence,
companies follow this standard and they check the quality using testing.
Marketing
Industry sources point out that cement business in India is mostly retail business. Companies
conduct market research at the time they enter the market and analyze the quality of cement
produced by their competitors.
After market research, companies develop and refine the product that meets customer needs.
Packaging and pricing represents a very concrete way to communicate with the target market and
express the positioning of business. Companies also ensure the right kind of distribution method
that suits the company and the customer. Companies also promote the product through
advertisements.
Figure 1: Market Structure
Source: Myiris.com
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As experts point out, the market structure of the Indian cement industry is fragmented with no firm
having a significant market share. The industry comprises small and medium sized companies. The
top 5 players in the Indian cement industry make up for more than half of the installed capacity of
around 190 million tons while small players hold the balance portion in the industry. Market share
of top five players in the industry has increased from 42% in FY 02 to 56% in FY 07. In FY 07,
Holcim group maintained its leadership position with a market share of 22.6% followed by Aditya
Vikram Birla group at 19.4%.
The extent of concentration in the industry has increased over the years. The reason for this being
the focus of the larger and more efficient units to consolidate their operations by restructuring their
businesses and by taking over relatively weaker units. The relatively smaller and weaker units are
finding it difficult to withstand the cyclical pressure of the cement industry.
Industry Performance
The current growth lead in Indian cement industry has been happening over the past seven years.
The reason is the boom in real estate and the housing sector, infrastructure projects, and industrial
expansion. Among these, real estate sector is the key driver and accounted for almost 55% in FY
08. The growth in the domestic demand for cement surpassed the economic growth rate of thecountry; also, the growth rate of cement demand over the last five years at a CAGR 8.37% was
higher than the growth rate of supply at a CAGR 4.84%.
Figure 2: Growth in Demand and Production
Source: Hindu Business Line.
Cement production increased from 155.66 million tons in 2006-07 to 168.29 million tons in
2007-08 with an 8.11 percent growth rate. In March 2008, the industry produced 16.37 million
tons of cement, the highest production compared with the production in the remaining months of
Financial Year 2007-08. Simultaneously, the overall dispatches of the industry grew by 7.98
percent during 2007-08 to 167.65 million tons compared to 155.26 million tons in 2006-07.
Cement dispatches have increased by 6.05 percent to 14.72 million tons in April 2008 against
13.88 million tons in April 2007.
Cement is a bulky commodity and cannot be transported with ease over long distance. This is the
reason it makes it to a regional market place, and the nation being divided into five regions. Each
region is characterized by its own demand supply dynamics. Region-wise, the growth of
consumption as of March 2008 was about 10 percent over the previous year in the North and
South, 15 percent in the West, 5 percent in the centre and 2 percent in the East. These contribute to
a 9 percent growth across India.
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Figure 3: Capacity Utilization
Source: Hindu Business Line.
Analysts say that the growing demand for cement has led to an increase in its production capacity.
The total production capacity of the Indian cement industry has increased to 190 mt at the end of
2007-08, as against 167 mt at the end of 2006-07, recording a growth rate of 13-14 percent.
Further, with a capacity addition of 0.45 mt by Vasavadatta Cement in April 2008, the installed
capacity of the cement industry has increased to 196.22 mt as on April 30, 2008. Currently, Indian
cement industry is operating at 100% capacity utilization. The reason is capacity addition in the
industry is at a slower rate compared to demand growth and is leading to maximum capacity
utilization.
Growth Initiatives
Infrastructure and Housing Boom
Currently, Indian economy is growing at nearly 9 percent. To maintain this growth rate in future,
government spending on infrastructure facilities are expected to increase. In India, real estate and
housing sector are in a boom phase. Government initiatives in the infrastructure sector, coupled
with the housing sector boom and urban development, will continue to be the main drivers of
growth for the Indian cement industry. Increased infrastructure spending has been a key focus area
over the last five years indicating good times ahead for cement manufacturers.
As per estimates, an investment of US$25 billion is required for urban housing, and an investment
of US$450 billion is required for infrastructure-related projects. Industrial expansion projects
would witness investments worth US$88 billion over the next five years. Furthermore, Finance
Minister, P. Chidambaram, has stated that India would double the amount to be spent on
infrastructure over the next five years to sustain its record economic growth and modernize itsinfrastructure. The government has increased budgetary allocation for roads development under
National Highway Development Project (NHDP) to USD 3.23 billion; this allocation will keep up
the demand for cement. The continuous increase in the number of infrastructure projects along
with a rise in construction activity has ensured rising demand levels for the cement industry.
Hence, the demand for domestic cement is expected to grow at a CAGR of approximately 10% for
the next 5 years.
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Capacity Addition
Cement companies are adding more plants to provide for a rapidly expanding economy. Cement
industry is therefore expected to add 111 million ton (mt) of annual capacity by the end of 2009-10
(FY 10), riding on the back of approximately 141 outstanding cement projects. As per ICRA
Industry Monitor, the installed capacity is expected to increase to 186 mt per annum (mtpa) by
FY 08-end, and 219 mtpa by end of FY 09, and up to 241 mtpa by FY 10-end.
Commercial Structure and Corporate Projects
Currently, various sectors like textile, chemical, plastic and mineral are operating at 100%
capacity. Therefore, large investment in capacity expansion across these sectors is likely to boost
the demand for cement as also the huge demand for multiplex and malls envisaged by real estate
companies. Hence experts feel that the demand for cement is here to stay.
Captive Power Plants
Rising cost of power and interruptions is a big concern to the industry as this affects the bottom
line of the companies. The power requirements of the cement industry average around 110-120
kilowatt hours of power per ton of cement produced. The average energy cost of the industry has
increased from Rs.528 a ton in Financial Year (FY) 2000 to Rs.581 a ton in FY 2007. The industrynow focuses on captive power generation to reduce power costs and to ensure continuous power
supply. Captive power generation tends to be more cost effective as compared to power from the
grid. According to an estimate, power from the grid usually averages Rs.3/unit, and that generated
from DG sets cost Rs.5/unit, while power generated using coal-fired steam turbines costs
Rs.1.5-2/unit. At the end of FY07, nearly 53% of the total cement production was powered
through captive sources.
Logistic Cost
Logistic cost is also an important cost element. Cement, which is low value bulk product, logistics
is a big cost component both by way of transforming the raw material to the plant and cement to its
market. Freight and distribution expenses as a percent of cost of sales for the cement companies
have increased from 18.4 percent in 2002 to 24 percent in 2007. In FY 2008 freight costs are
soaring with higher petroleum and diesel prices. The 2008 Railway Budgets 14 percent reductionin freight charges for fly ash, waiver of busy season surcharge on bulk goods and addition of new
lines to serve cement clusters in different regions, could bring some relief to cement companies on
this front in the coming quarters. Also, cement movement by rail has increased over the years.
Issues and Concerns
Rising Input Costs
An increase in the cost of coal, power tariff, royalty on limestone and freight costs have resulted in
cost pressure. Domestic coal prices surged following a 10 percent hike in the prices of all grades of
coal by Coal India Limited in December 2007. The sharp surge in coal prices (due to continued
demand in the Asian region), and the significant rise in international oil prices, prompted a move
towards coal-based power generation. Cement plants accounted for around 4.2 percent of Indias
coal demand. A further spike in energy cost, the profit margin of the market player erodes further.
Oversupply
Though cement industry is adding capacity experts feel that this scenario poses a problem of
oversupply in the cement industry. Cement producers are expected to increase 88 million tons
capacity of cement production at the end of FY 10. Thus, the cement producers have more cement
to supply than its demand.
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Table 1: Cement Demand and Supply
Million tons
Year Ending Total
Production
Total Demand Excess
March 2007 154.8 148.4 6.4
March 2008 186 163.25 1.85
March 2009 219 179.57 18.03
March 2010 241 197.53 44.87
Source: www.Hindu business line.com
Rising Interest Rate
Also the rise in interest rates on housing loans creates a fear that high interest rates would affect
the housing and real estate boom.
Future Scenario
Industry players expect the demand for cement to continue and to remain robust; they also expect
it to sustain the 9-10% per annum growth over the next few years in the wake of huge
infrastructure and housing development requirements across the country. However, the 80-90 mtpa
fresh capacity additions over the next couple of years will lead to softening of cement prices in the
country. Further, any increase in cement prices in the near term would primarily be aimed at
offsetting additional cost pressures.
Company Information
Aditya Birla Group acquired UltraTech Cement (UTCL) in July 2004 from L&T Ltd. it was
formally known as L&T Cement. After the acquisition, Birla Group changed the name from L&T
Cement to UltraTech Cement Limited. UltraTech brand falls in the premium segment of the
cement market. UltraTech produces both cement and concrete.
Company sources proudly announce that UltraTech Cement is known for its impeccable quality.
The company has the capacity to produce 17 million tons of cement annually. It has five integrated
plants, five grinding units and three terminals, one of which is located in Sri Lanka. The
subsidiaries of UltraTech cement are: Dakshin Cement Limited and UltraTech Ceylinco (private)
Limited.
Table 2: Production Capacities of UltraTech Cement
Plant/ Unit Kiln Capacity
(tpd)
Capacity
(million tpa)
A. Composite Integrated Plants
Andhra Pradesh Cement Works 8000 2.3
Awarpur Cement Works 9500 3.3
Gujarat Cement Works 15000 5.3
Hirmi Cement Works 8050 1.6
Narmada Cement-Jafrabad Works 4350 0.4
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Plant/ Unit Kiln Capacity
(tpd)
Capacity
(million tpa)
B. Grinding Units
Arakkonam Cement Works 1.2
Jharsuguda Cement Works 0.8
Narmada Cement- RatanGiri Works 0.4
Narmada Cement- Magdala Works 0.7
West Bengal Cement Works 1
Total 17
Source: www.ultratechcement.com
UltraTech Products
UTCL manufactures and markets Portland cement, Portland blast furnace slag cement, and
Portland Pozzolana cement; it also manufactures Ready Mix concrete.
Ordinary Portland Cement
Ordinary Portland cement is the most commonly used cement for a wide range of applications.
These applications cover dry-lean mixes, general-purpose ready-mixes, and even high strength
pre-cast and pre-stressed concrete.
Portland Blast Furnace Slag Cement
Portland blast-furnace slag cement contains up to 70 percent of finely ground, granulated
blast-furnace slag, a non-metallic product consisting essentially silicates and alumino-silicates of
calcium. Slag brings with it the advantage of the energy invested in the slag making. Grinding slag
for cement replacement takes only 25 percent of the energy needed to manufacture Portland
cement. Using slag cement to replace a portion of Portland cement in a concrete mixture is a useful
method to make concrete better and more consistent. Portland blast-furnace slag cement has alighter color, better concrete workability, easier finish ability, higher compressive and flexural
strength, lower permeability, improved resistance to aggressive chemicals and more consistent
plastic and hardened consistency.
Portland Pozzolana Cement
Portland Pozzolana cement is ordinary Portland cement blended with pozzolanic materials
(power-station fly ash, burnt clays, ash from burnt plant material or silicious earths), either
together or separately. Portland clinker is ground with gypsum and pozzolanic materials which,
though they do not have cementing properties in themselves, combine chemically with Portland
cement in the presence of water to form extra strong cementing material which resists wet
cracking, thermal cracking and has a high degree of cohesion and workability in concrete and
mortar.
UltraTech Concrete
UltraTech Concrete is a part of UTCL. Ready Mix Concrete business has a substantial growth in
coming years. For capturing this growth, the company has commenced setting up RMC plants at
various places in the country. Currently, UltraTech Concrete plants are present in 17 cities
Mumbai, Pune, Nasik, Nagpur, Ahmadabad, Surat, Gurgaon, Noida, Jaipur, Chandigarh, Chennai,
Bangalore, Hyderabad, Cochin, Vizag, Ludhiana, and Kolkata.
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Basic Revenue Model
UTCL distribution network is pan India spread across India. It has 14000 dealers and 60000
retailers. It distributes cements to retail customers through this network. It also manufactures and
distributes Ready Mix Concrete. Currently, UltraTech directly distributes concrete to builders and
construction companies from its RMC plants located in 17cities.
UTCL is also the countrys largest exporter of cement and clinker. The company exports over
2.5 million tons per annum, which is about 30 percent of the countrys total exports. The export
markets span countries around the Indian Ocean, Africa, Europe and the Middle East.
Business Strategy
UltraTech is the second largest cement producer in India with a market share of 10%. In the fourth
quarter of Financial Year 2007-08, it reported a net sales growth of 9.3% YoY to Rs.16,020
millions. This growth was lead by about 9% YoY improvement in blended realisation per ton of
Rs.3,325 (Rs.3,050) as the company benefited from the run-up witnessed in cement prices in the
South.
Ready Mix Concrete Plants
The ready mix concrete sales account 5% of the companys total sales. In future, the demand of the
ready mix concrete will increase and its growth rate is likely to be substantial. Therefore, it has
established ready mix concrete plants at various places in the country to capture the demand of
ready mix concrete and is likely to add a few more.
Expanding Capacities
In India, the demand for cement is expected to rise in near future because of increased government
spends on infrastructure projects, and due to housing and real estate boom. To capture this
demand, the company plans to expand its capacity from 17 million tons to 25 million tons by
increasing its production capacity by 8 million tons.
Power Cost
Cement industry is an energy intensive industry. The availability of quality power on a regular
basis at an economic rate is a big challenge. So, the company is to establish captive power plants
to mitigate rising energy costs. The company is to set up captive power plants at its Andhra
Pradesh, Chhattisgarh and Gujarat units. These plants would meet 80 percent of the companys
power requirement. Captive power plants reduce dependence on the State Power Grid.
Capturing South Indian Market
In the southern region, demand for cement is expected to be high in coming years. The demand is
driven by government projects like IT Parks, Special Economic Zones and infrastructure projects.
UltraTech is augmenting capacities by an additional 4.9 million tons per annum at its unit in
Andhra Pradesh, to cater to the growing demand in the South Indian market.
Building Solutions Retails Stores
To retain its customer base, to be accessible to its customers, and to extend customer support the
company proposes to establish 200 Building Solutions Retail Stores (UTBS) across India before
the end of this calendar year. The concept is based on plan, build and support philosophy. Using
this service, the customer can get a list of construction products like wood, paints, fittings, sands,
bricks etc. all at one place. UTBS would also offer a complete support through tests at the
construction site to ensure quality standards.
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Capital Expenditure Plan
UltraTech Cement has allocated over Rs.26,000 millions for its various Capex plans. Of this,
around Rs. 11,000 millions will be spent in setting up captive power plants at their Units in
Andhra Pradesh, Chhattisgarh and Gujarat. The Power Plant in Andhra Pradesh will be
commissioned in the last quarter of FY 08 and the one at Chhattisgarh in the first quarter of FY 09.
The power plant in Gujarat will be commissioned in a phased manner commencing from the last
quarter of FY 08 and ending in the second quarter of FY 09. The capacity of Companys Unit at
Andhra Pradesh is being increased by 4 mtpa with a grinding Unit in Karnataka at an expenditure
of around Rs.11,000 millions. It was commissioned in March 2008, and this will help the outfit to
meet the growing demand 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, company has commenced setting up Ready Mix
Concrete Plants at various places in the country.
Future Scenario
Currently, in India, cement industry is adding capacity to meet the growing demand of cement.
UltraTech is a market leader in establishing capacity addition and company has planned to
increase its capacity 8 million tons from 17 million tons to 25 million tons.
Company sources confirm that problem of power shortage and rising input cost is a bigger threat.
For this, it chalked out an action plan to meet future contingencies. For power shortage, company
is planning to establish captive power plants. Captive power plants reduce dependence on state
grid. Rising Input costs affect the industrys profit margin. But UltraTech cement has fared better
as compared to others in the industry because of its concentration in the Western and Southern
markets; this move has led to stronger growth in its demand and gave higher returns. The capacity
of UltraTechs Unit in Andhra Pradesh is being augmented by 4 mtpa with a grinding Unit in
Karnataka at an expenditure of around Rs.11,000 millions. This was commissioned in March
2008. This augmentation will also help the company to cater to the growing demand in South
India.
UltraTech exports its cement to Middle East countries. Currently, Middle East countries are in the
midst of an infrastructure boom. UltraTech cement is utilizing this opportunity because thecompany has a customer base in these countries. This also boosts the demand for its cement.
The companys future prospects are characterized to industry future and UTCL claims that the
company is better placed in industry compared to other peer groups.
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ANNEXURE I
Sales Volumes of the company is expected to be 17.95, 19.75 and 21.32 million metric
tonnes in the next three years.
In next three years, Sales Realization will be Rs.3,057.11, Rs.3,301.68 and Rs.3,433.75 per
Rs. metric ton.
PBT as a percentage of sales for the next three years is expected to be at 20.67, 16.06 and
14.69 percent.
Depreciation for the next three years will be Rs.2,409.4 millions, Rs.3,703.7 millions and
Rs.4,016.9 million.
Fixed Assets and Capital WIP in the next three years is expected to be:
Rs. in Million
FY 07 FY 08 FY 09 FY 10
Gross Assets 47,847 63,977 69,997 77,477
Capital WIP 6,969.5 11,939.5 15,529.5 13,339.5
Long-term debt of the company in the next three years will be Rs.22,781.0 millions,Rs.30,323.7 millions and Rs.32,838.9 millions.
Working Capital Turnover Ratio is
FY 07 FY 08 FY 09 FY 10
Net Working Capital Turnover Ratio 42.55 21.05 22.09 26.81
Interest cost is expected to be 9% on long-term liabilities in the next three years.
Terminal growth rate is 5%.
Tax rate is 33%.
No. of Outstanding Share is Rs.124.4 millions.
10 year government bond yield is 7.55%.
Market risk premium is 8.54%.
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ANNEXURE II
Profit & Loss A/c
(Rs. in Million)
Particular FY 04 FY 05 FY 06 FY 07
Net Sales 22,511.3 26,069.0 32,994.5 49,108.3
% Growth 158.0 265.7 488.4
Increase/(Decrease) in stock 69.9 209.1 391.2 325.4
Total Revenue 22,441.4 26,278.1 33,385.7 48,782.9
% Growth 171.0 270.5 461.2
Expenditure
Raw material 1637.8 2653.4 2841.1 3929.9
% of net sales 72.8 101.8 86.1 80.0
Manufacturing 9211.4 10,608.3 12,032.9 15,185.8
% of net sales 409.2 406.9 364.7 309.2
Purchase of Finished product 1050.8 1939.3 2653.2 1824.3
Payment to and provision for employee(staff Cost) 666.7 729.6 922.6 1172.2
% of net sales 29.6 28.0 28.0 23.9
Selling and Distribution, Adm. and other exp. 6683.3 6839.2 9393.3 12,492.6
% of net sales 296.9 262.3 284.7 254.4
Total Expenditure 19,250.0 22,769.8 27,843.1 34,604.8
% of net sales 855.1 873.4 843.9 704.7
EBITDA 3191.4 3508.3 5542.6 14,178.1
Depreciation 2145.2 2217.8 2160.3 2262.5
Deferred Revenue Expenses Charged of 768.4
EBIT 1046.2 522.1 3382.3 11,915.6
Financial Charge 1150.1 1068.8 896.4 868.3
Other Income 595.9 210.7 370.0 614.6
PBT 492.0 336.0 2855.9 11,661.9
Tax 103.7 364.5 558.3 3839.1
Effective Tax Rate 210.8 1084.8 195.5 329.2
Adjusted PAT 388.3 28.5 2297.6 7822.8
Adjusted PAT Growth % 926.6 79,617.5 2404.8
Dividend 70.2 106.6 248.5 567.7
PAT after Dividend 318.1 78.1 2049.1 7255.1
Share in issue 124.4 124.4 124.4 124.4
Source: Ultratech Annual Report.
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ANNEXURE III
Balance Sheet
(Rs. in Million)
Particular FY 04 FY 05 FY 06 FY 07
Gross Asset 42758.4 43042.9 46053.8 4784.7
Accumulated Depreciation 15479.4 17553.9 20682.1 22674.2
Net Fixed Asset 2727.9 2548.9 25371.7 25172.8
Capital WIP 240.6 481.8 1410.3 6969.5
Total Fixed Asset 27519.6 25970.8 2678.2 32142.3
Investment 2380.9 1847.9 1723.9 4834.5
Current Asset
Cash 418.3 562.6 61.6 895.9
Inventory 2231.8 2837.1 3795.9 4335.8
Trade Debtors 1775.7 1719.5 1725.5 183.5Loans And Advances 2970.1 3257.3 158.8 253.5
Total Current Asset 7395.9 8376.5 7725.4 9601.7
Current Liabilities 3644.3 4154.3 5168.7 7367.1
Provision 199.2 238.7 391.8 184.7
Total Current Liabilities 3843.5 439.3 5560.5 7551.8
Net Current Asset 3552.4 3983.5 2164.9 2049.9
Net Current Asset excluding cash 3134.1 3420.9 1548.9 115.4
Miscellaneous Expenditure 155.2
Capital Deployed 33608.1 31802.2 30670.8 39026.7
Total Asset 37451.6 36195.2 36231.3 46578.5
Non-Current Liabilities
Secured Debt 12450.1 12533.5 12219.3 11512.5
Unsecured Debt 3906.3 2780.3 229.9 4273.8
Total Liabilities 16356.4 15313.8 14518.3 15786.3
Deferred Tax Liabilities 6497.1 5817.1 5769.6 5602.6
Share Capital 124.4 124.4 124.4 1244.9
Share Capital Suspense 05.1 00.9
Reserve 9505.4 9427.3 9137.8 16392.9
Total Shareholder Equity 10754.5 10671.3 10382.7 17637.8Capital Employed 33608.0 31802.2 30670.6 39026.7
Total Liabilities 37451.5 36195.2 36231.1 46578.5
Source: Ultratech Annual Report.
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ANNEXURE IV
Cash Flow Statement
(Rs. in Million)
Particular FY 04 FY 05 FY 6 FY 07
Cash Flow from Operating Activities
PBT 492.0 432.4 2855.9 11,661.9
Depreciation 2145.2 2217.8 2160.3 2262.5
Interest Paid 1150.1 1068.8 896.4 868.3
Interest Received 175.4 36.0 ..99 298.2
Other 250.5 383.6 117.4 46.2
Deferred Tax Liability
Operating Profit before Working CapitalChange 3361.4 4066.6 5725.3 14,540.7
Change in Current Asset 595.5 869.7 441.9 1460.1
Change in Current Liabilities 437.8 527.2 782.1 2222.7
Change in Working Capital 157.7 342.5 -340.2 762.6
Cash Generated From Operation 3203.7 3724.1 6065.5 15,303.3
Direct Tax Paid 206.3 357.9 562.5 4272.8
Net Cash Generated from Operation 2997.4 3366.2 5503.0 11,030.5
Cash Flow from Investing Activities
CAPEX 47.8 688.5 2141.9 7652.7
Investments 1299.2 220.3 1479.2 3107.4
Interest Received 147.3 37.0 68.4 297.6
Net Cash Used in Investing Activities 1629.9 871.8 3552.7 10462.5
Cash Flow from Financing Activities
Change in Debt 538.1 1201.2 880.4 1311.9
Change in Equity 223.9 05.1
Dividend Paid 62.2 93.3 715.8
Interest Paid 635.2 1081.6 923.2 884.1
Net Cash Used in Financing Activities 949.4 2350.1 1896.9 288.0
Net Increase in Cash and Cash Equivalents 418.1 144.3 53.4 280.0
Cash and Cash Equivalents at the Beginning 00.3 418.4 562.7 616.1
Net Increase in Cash and Cash Equivalents 418.1 144.3 53.4 280.0
Cash and Cash Equivalents at the End 418.4 562.7 616.1 896.1
Source: Ultratech Annual Report.
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8/13/2019 07 Ultratech Cement
15/16
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8/13/2019 07 Ultratech Cement
16/16
UTCL 2008-07
132
References
1. www.ultratechcement.com
2. www.ibef.org/industry/cement.aspx
3. www.business.mapsofindia.com/cement/4. www.economywatch.com/business-and-economy/cement-industry.html
5. www.hindubusinessline.com
6. www.economictimes.com
7. www.equitymaster.com/research-it/sector-info/cement/
8. www.deadpresident.blogspot.com
9. www.myiris.com
10. ICRA Industry Monitor11. www.ultratechconcrete.com
12. www.adityabirla.com
13. www.grasim.com/
14. www.bseindia.com
15. www.moneycontol.com