UltraTech Cement Limited is not only one of the leading cement companies in India but also one of the biggest cement exporters and manufacturers globally. The company features 18 different integrated plants, 7 huge terminals, 25 certified grinding units, and 1 clinkerisation plant. The company has the capacity to produce 93 MTPA (Million Tonnes Per Annum) whose operations are spread across UAE, India, Bahrain, Sri Lanka, and Bangadesh.
The market cap of UltraTech Cement Limited is more than Rs.1,14,500 crore, as of March 2018.
Company’s Wealth And PerformanceQ1 FY 2018-19
- For the quarter on June 30, 2018, the revenue from operations of UltraTech Cement was Rs.9,021.41 crore. Over the same quarter of the previous financial year, the revenue from operations has improved by a little over 12%.
- Considering the profitability of the company, it reported a consolidated net profit after tax of Rs.631.221 crore, in comparison to Rs.897.91 crore reported for the June quarter of the previous financial year. The drop in the profit came on the account of a substantial increase in the expenses for the period.
- Consequently, the company’s earnings per share (EPS) dropped from Rs.32.67 to Rs.23.01 y-o-y.
- For the year ended on March 31, 2018, UltraTech Cement Limited reported its consolidated total income to be at Rs.32,888 crore. The same figure for the previous fiscal year was reported to be Rs.29,294 crore.
- Considering the total expenses for the financial year 2017-18, the figure was revealed to be Rs.29,240 crore. With respect to the expenditure reported for the previous year, there has been an increase of a little over Rs.3,800 crore.
- Owing to this increase in the expenses for the year, the company’s profits were offset by a considerable margin. The company’s net profit for the period was reported to be at Rs.2,222.1 crore, as against a net profit of Rs.2,714.9 crore stated as on March 31, 2017.
- Consequently, the company’s basic earnings per share dropped from Rs.98.88 to Rs.80.92 y-o-y.
- The non-current liabilities of UltraTech Cement Limited incurred a sharp rise from Rs.9,488 crore to Rs.19,421.5 crore, y-o-y.
- UltraTech Cement Limited was founded in the year 1983 but in the recent decades, it has reached great heights.
- The company makes a net sales close to Rs.20,000 crore a year and a net revenue of Rs.370 crore every year.
- The company has become the fourth biggest cement player in the global market and is growing consistently from the previous decades.
- During Q3 FY 2018, the company earned a revenue of Rs.7,745.43 crore and a Net Profit After Tax of Rs.421.47 crore. Due to the PMAY (Pradhan Mantri Awas Yojana) scheme, the sales spiked up and the demand for cement increased drastically in the quarter.
- The domestic sales volume inclined by 37% at 15.1 MNT when compared to the third quarter of the fiscal year 2017. The cash profit also grew by 2% and operating EBITDA by 14%.
UltraTech Cement Limited Stock Trends in 2018
- During Q1 FY 2018, the company made a revenue of Rs.7,685.45 crore and a Net Profit After Tax of Rs.890.62 crore. In this quarter, UltraTech’s consolidated capacity improved to 93 MTPA (Million Tons Per Annum) and enhanced the operational benchmarks. The EBITDA inclined by 10% from Q1 FY 17 and made an income of Rs.1,725 crore.
- During Q2 FY 2018, UltraTech Cement Limited made a revenue of Rs.6,739.35 crore and a Net Profit After Tax of Rs.431.24 crore. Comparing to the second-quarter of the fiscal year 2017, the figures of this quarter greatly improved. The EBITDA inclined by 14% with an income of Rs.1,519 crore and the domestic sales increased by 18% with 12.41 Million Metric Tons.
- During Q3 FY 2018, the company earned a revenue of Rs.7,745.43 crore and a Net Profit After Tax of Rs.421.47 crore. Due to the PMAY (Pradhan Mantri Awas Yojana) scheme, the sales spiked up and the demand for cement increased drastically in the quarter. The domestic sales volume inclined by 37% at 15.1 MNT when compared to the third-quarter of the fiscal year 2017. The cash profit also grew by 2% and operating EBITDA by 14%.
- On January 2, 2018, the UltraTech Cement shares commenced trading at Rs.4,285 on the NSE. Over the course of the month, the scrip gained marginally to reach its 52-week high at Rs.4,599.90. This drastic rise was soon followed by a sharp nosedive that took the shares down to the levels slightly above Rs.4,100.
- Through February and first half of March, the UltraTech Cement stock price did not cross the Rs.4,160 mark. In the second half of March, the scrip lost a little over 5% in little over a week to enter the Rs.3,800 region. In April, the prices recovered once again to cross the Rs.4,000 mark, although that rally was short-lived.
- In early May, the prices slumped once again and this time, the shares lost considerably to reach the Rs.3,600 mark. Things stayed this way in the month of June as well, with the scrip eventually hitting its 52-week low at Rs.3,563. It wasn’t until July that the prices rose again. In the same month, the company announced a final dividend of 105%.
- At the end of July, the UltraTech Cement stock price crossed the Rs.4,100 mark once again and the shares continued to enjoy their newly found momentum. The rise was seen in the month of August as well and the shares eventually went past the Rs.4,300 mark.
- However, the month of September proved to be disappointing for the investors as the stocks lost their recently made gains. As of September 19, the shares were seen trading at levels close to Rs.4,050.
UltraTech Cement Limited Stock Trends in 2016 And 2017
- During Q1 FY 2016, the company made a revenue of Rs.6,097.48 crore and a Net Profit After Tax of Rs.590.79 crore. In this quarter, UltraTech has commissioned WHRS (Waste Heat Recovery Systems) of 15 MW (Mega Watts). With this, the company also allotted equity shares of 2,169, each for Rs.10. Consequently, the firm’s paid-up equity share capital increased to 274,406,796 from 274,404,627. The quarter ended with high sales in the cement business.
- During Q2 FY 2016, UltraTech earned a total revenue of Rs.5,681.65 crore and a Net Profit After Tax of Rs.393.89 crore. In this quarter, the company commissioned WHRS of 5MW and allotted 3,936 equity shares, each of Rs.10. As a result, the quarter’s depreciation charge ended higher by Rs.24.24 crore.
- During Q3 FY 2016, the company earned a total revenue of Rs.5,825.81 crore and a Net Profit After Tax of Rs.508.56 crore. In this quarter, UltraTech componentized its assets (fixed) and reviewed the life of most major components. The depreciation charge ended higher by 17.18 crore. The company allotted 7,380 equity shares, each Rs.10.
- During Q4 FY 2016, the demand for cement in the market grew by 11.5% and with this, the capacity utilization also improved. In this quarter, UltraTech Cement Limited made a revenue of Rs.6,503.66 crore and a Net Profit After Tax of Rs.681.41 crore. The domestic sales volume for cement increased by 15% with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Rs.1,478 crore.
- During Q1 FY 2017, UltraTech Cement Limited made a total revenue of Rs.6,232.53 crore and a Net profit After Tax of Rs.774.92 crore. In this quarter, there was a subdued demand in the market due to heat conditions and drought situations. The sales volume inclined by 6% at 12.57 Million Metric Tons. The EBITDA margin increased by 400 basis points at an income of Rs.1,573 crore.
- During Q2 FY 2017, the company made a revenue of Rs.6,195.65 crore and a Net Profit After Tax of Rs.601.05 crore. The quarter saw a lower cement demand due to the impact of monsoons and the capacity also declined by 411 MTPA (Million Tons Per Annum).
- During Q3 FY 2017, the company made a revenue of Rs.6,195.65 crore and a Net Profit After Tax of Rs.601.05 crore. This quarter was very challenging because the cement sales slowed down, cement costs weakened, costs started hardening, and the sector capacity utilization went down by 60%. The domestic sales declined by 2% but the operating margin inclined by 21% at 100 basis points.
- During Q4 FY 2017, the company made a total revenue of Rs.7,739.50 crore and a Net Profit After Tax of Rs.688.33 crore. The total sales grew only by 1% at a volume of 14.07 MNT. The capital utilization declined by 1% and EBITDA by 10% at a revenue of Rs.1,381 crore.
Should you Invest in UltraTech Cement Limited?
- UltraTech’s operating profit margin has grown each year in the last three years and has a better market leadership.
- In spite of various acquisition/expansion projects undertaken, the company geared to a net debt-equity ratio of 0.17 during the financial year 2016.
- In the last 5 years, the company’s book value share has inclined by 14% and the total sales volume also inclined by 7% to 51.3 million tones in FY 2016 alone.
- As far as the data and sales figures of the company are considered, there are valid reasons one should invest in its stocks.
UltraTech Cement Limited is one of the largest manufacturers of:
- RMC (Ready Mix Concrete)
- Grey Cement
- White Cement
- Waterproofing Solutions
- Wall Care Putty
- AAC Blocks
Besides India, UltraTech is also one of the best cement manufacturers in the global market. As a brand, it embodies innovation, reliability, and strength. These attributes encourage engineers to expand their imagination limits to build better homes, structures, and buildings.
In the category of white segment, the company has its brand name as Birla White and their plants have a capacity to produce 0.56 MTPA. With more than 100 RMC plants spread across 35 cities, it is one of the biggest concrete manufacturers in India.
UltraTech Cement has a few other subsidiaries like:
- Harish Cement Limited
- Dakshin Cements Limited
- Bhagwati Limestone Company Pvt. Ltd.
- Gotan Limestone Khauj Udyog Pvt. Ltd.
- UltraTech Cement Middle East Investments Ltd.
- UltraTech Cement Lanka Pvt. Ltd.
- PT UltraTech Mining Indonesia
- PT UltraTech Mining Indonesia
The parent company of UltraTech is the Aditya Birla Group, which has already been in the list Fortune’s 500 best companies. The organization employs more than 1,20,000 people, who belong to 42 nationalities across 36 countries.
History of the Company
The journey of UltraTech began more than 30 years ago and exports its cement in Europe, Middle East, Africa, and countries surrounding Indian Ocean. In August 2000, it incorporated as one of the key public limited companies with the brand name L&T Cement Limited.
However, in 2003, the company name was modified to UltraTech ChemCo Limited. In May 2004, the business acquired Larsen & Toubro Ceylino Pvt. Ltd.’s equity shares for Rs.4 crore with a collective consideration of Rs.23 crore. In July 2004, the Grasim Industries Limited acquired control over the company and later in October, the company name was changed to UltraTech Cement Limited.
Narmada Cement Company Limited also became its subsidiary and after the amalgamation, from 2005 to 2006, UltraTech increased its cement production capacity to 170 lakh tonnes. Therefore, this whole undertaking has transformed the company’s overall capability. In 2008, UltraTech increased its cement production capacity to 182 lakh tonnes and further, set up 15 RMC (Ready Mix Concrete) industrial plans throughout the country.
In 2009, the company grew bigger with APCW (Andhra Pradesh Cement Works) and improved its cement production capacity to 219 lakh tonnes. They also set up new RMC plants to increase the capacity to 4.76 million cubic meters per annum.
In 2010, the company amplified its production capacity to 231 lakh tonnes and incorporated a fully-owned subsidiary firm in the UAE called UltraTech Cement Middle East Investments Limited. In 2014, it welcomes the new link of Gujarat Cement Dealers and in 2015, it commissions the Rajasthan’s clinkerisation plant.
Kumar Mangalam Birla – The Chairman of UltraTech Cement Limited
Kumar Mangalam Birla besides being the Chairman of UltraTech, also boards many major companies both national and international. A few of the global companies include Thai Carbon Black, Aditya Birla Chemicals, Aditya Birla Minerals, Columbian Chemicals, Domsj Fabriker, Alexandria Carbon Black, Terrace Bay Pulp Mill, etc.
He took over as a chairman in 1995 when he was just 28 years old and this was due to unexpected death of his father. During his tenure, he has transformed the company to great heights and in the last 17 years, he has enhanced growth, accelerated the stakeholder value, and developed a meritocracy. He has managed to restructure the entire big business to rise as a national/global leader in the field of infrastructure.
K.K. Maheshwari – The Managing Director of UltraTech Cement Limited
K.K. Maheshwari is one of the longest serving members of Aditya Birla Group and has played various roles in the company. His experience and expertise brings multi-cultural, multi-geography, and multi-business exposure to the firm.
He is a CA (Chartered Accountant) with more than 38 years of experience and under his leadership, he has developed an extensive profit in different businesses of the group. He has certainly brought a healthy execution with rigor and has strengthened the innovation of new products.
Atul Daga – Full-time Director and CFO (Chief Financial Officer)
Atul Daga has not only undertaken various initiatives but also contributed a lot in increasing the company’s growth. He is a full-time director and the CFO at UltraTech. He is into creating a strong platform for evaluating M&A prospects, managing the investor relations, and setting benchmark for long-term borrowings.
He is a CA (Chartered Accountant) with more than 29 years of experience and has also been a part of the company for more than 2 decades. In 1988, he joined Rajashree Cement as an Executive Assistant, where he worked with aluminum, cement, carbon black, and other chemical businesses. From 2010, he has developed a very strong team and later, took over as the CFO of UltraTech in 2014.
UltraTech Cement Limited Listings and Indices
The UltraTech Cement Limited is listed in both:
- NSE (National Stock Exchange) with the code ULTRACEMCO
- BSE (Bombay Stock Exchange) with the code 532538
Wing “B“, 2nd floor,
Ahura Centre Mahakali Caves Road,
Mumbai – 400093.
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