23 January 2015
UltraTech Cement Limited, an Aditya Birla Group company, today announced its unaudited financial results for the quarter ended 31 December 2014.
The combined domestic cement and clinker sales was 10.98 MnT (9.98 MnT) and 3.16 LmT (2.89 LmT) for white cement and wall care putty.
On a sequential basis, prices witnessed a downward trend. However, the on-going cost optimisation measures helped in containing costs despite the continuing increase in price of input material and logistics cost.
On a consolidated basis, net sales stood at Rs.5,835 crore as compared to Rs.5,137 crore in the corresponding period of the previous year. Profit before Interest, Depreciation and Tax is Rs.1,058 crore and Profit after Tax is Rs.401 crore vis-a-vis Rs.928 crore and Rs.399 crore respectively.
Acquisition of cement units of Jaiprakash Associates
The Board had earlier approved the acquisition of cement business of Jaiprakash Associates Limited (JAL) situated at Bela and Sidhi in Madhya Pradesh, having a capacity of 4.9 mtpa together with 180 MW TPP.
The company and JAL have entered into a definitive agreement for this acquisition which will propel the company’s cement capacity in India from ~60 mtpa to ~65 mtpa. With the company’s current projects under way, the capacity in India will stand raised to ~71 mtpa in 2016.
In exchange of the above business, the company shall issue non-convertible debentures worth Rs.4,538 crore and non-convertible cumulative redeemable preference shares worth Rs.10 lakh. As part of the business, the company shall take over Rs.626.50 crores of debt and negative working capital of Rs.160.50 crores.
The transaction with JAL is subject to the approval of shareholders and creditors, sanction of the Scheme of Arrangement by the High Courts, approval of the Competition Commission of India and other statutory approvals. It is anticipated that the transaction will close in seven to nine months.
Standard Chartered Bank and Moelis & Company India Pvt. Ltd. are the transaction advisors and the valuation was carried out by Bansi S. Mehta & Co., Chartered Accountants. J. M. Financial Institutional Securities Limited provided the independent fairness opinion to the company. Amarchand & Mangaldas & Suresh A. Shroff & Co. is the legal advisor.
The business outlook continues to remain challenging. Demand growth in the long term is likely to be around 8 per cent. The key demand drivers will continue to be housing and infrastructure spends.
Dr. Pragnya RamGroup Executive President, Corporate Communications & CSRAditya Birla Management Corporation Private LimitedAditya Birla Centre, 1st Floor, 'C' WingS.K. Ahire Marg, WorliMumbai 400 030.
91-22-6652 5000 /2499 5000
Fax: 91-22-6652 5741/ 42