New Delhi, June 6 : The Supreme Court is likely to hear June 10 a plea by UltraTech Cement Limited challenging the order of the Competition Appellate Tribunal that asked the firm to deposit 10 percent of penalty imposed on it on a cartelization complaint.
The penalty was slapped by the Competition Commission of India (CCI) allegedly for engaging in cartelization with other cement manufacturers to manipulate cement prices.
Cement firms are planning to step up their capacities by investing in new expansions and running their existing plants at full capacity, despite emerging market concerns that demand can reverse in the future.
Aditya Birla group cement firm UltraTech Ltd has confirmed its plans to invest Rs 2,000 crore to expand its Rajasthan-based unit's capacity by 2.9 million tonne (MT).
India's leading cement producer, UltraTech Cement has recorded a fall of 16.3 per cent in profit during the first quarter till March compared to the same quarter of the previous year.
UltraTech Cement, which is a part of the Aditya Birla Group, said that it recorded a net profit of Rs 726.2 crore during the quarter from January till March, 2013 compared to Rs 867.32 crore for the same quarter of the previous year. Company's total income increased from Rs 5529.14 crore for the quarter ended March 31, 2012 to Rs 5572.52 crore in the first quarter of the year.
UltraTech Cement, a unit of Aditya Birla Group, has started discussions for acquiring an incomplete cement plant located in the state of Gujarat of ABG Cement, according to the reports.
According to a person closer to the matter, the company has appointed investment banking arm of Axis Bank, Axis Capital for advice on the deal to acquire the cement plant. UltraTech Cement has reportedly expressed interest in completing the project and expanding its cement business.
UltraTech Cement has said that its net profit has fallen 3 percent to Rs 601 crore rupees during the third quarter of the financial year.
The company had recorded a net profit of Rs 617 crore during the same quarter of the previous year. The figures also showed that the company's net sales increased to Rs 4,857 crore during the this quarter compared to to Rs 4,565 crore during the same period of the previous year.
JK Lakshmi Cement reported strong performance during second quarter of current financial year. The stock was trading 5 per cent higher and touched 52-week high in today's trade. The company reported Q2 net profit at Rs 50 crore compared to Rs 6.5 crore during same quarter last year. Sales were higher at Rs 491 crore compared to Rs 354 crore. ACC and UltraTechCement were marginally higher while Ambuja Cements was trading lower.
Some the leading cement manufacturers in the country are considering approaching the Competition Appellate Tribunal against the order by the Competition Commission of India that imposed heavy fines on the firms for cartelization.
ACC and Ambuja Cements have stated that they will contest the order by taking their appeal to the Competition Appellate Tribunal. Meanwhile, Aditya Birla group's UltraTech Cement has said that it will look into the matter and take an appropriate action. UltraTech has been slapped with a fine of Rs 1,175 crore.
UltraTech Cement's (UTCEM) Q1FY12 results were significantly ahead of our estimates as better realisations and lower overhead costs aided profit growth. Blended realisations grew 5.5% sequentially to Rs4.4k/mt and were 3% above estimates. Net sales on a proforma basis grew 9.5% YoY to Rs44bn. EBITDA margins expanded 400bps sequentially on reduction in employee and other expenditure. On a proforma basis net profits were up 22.5% YoY to Rs6.8bn as against our estimate of Rs4.6bn.
UltraTech Cement's (UTCEM) Q4FY11 results were ahead of expectation as better realisations and tax write-back boosted profits. While quarterly volumes crossed the 10mn mt mark, blended realisations grew 10.2% QoQ to Rs4.2k/mt. Revenues stood at Rs45.6bn. Contrary to expectations of an increase, power & fuel costs declined which in tandem with better realisations led to a sequential doubling in adjusted profits to Rs6.1bn as against our estimate of Rs5.1bn. A tax write back of Rs1.2bn further boosted reported profits to Rs7.3bn.
The cement industry has suffered due to over supply and substantial rise in costs. Cement demand is expected to pick up in the current quarter and continue until the onset of monsoon, giving price flexibility to manufacturers. Although all is still not well for the sector, the intense pain of Q2FY11 appears to be behind us.
UltraTech Cement’s (UTCEM’s) Q3FY11 results were marginally above expectation with the company reporting a profit ofRs3.2bn, as against our estimate of Rs3.05bn. Pickup in realisations in key Southern markets and higher contribution from the white cement business helped expand margins sequentially by 610bps to 19.6%. Results are not comparable on a YoY basis as Samruddhi Cement was merged with the company effective 1st July 2010. However, on a proforma financial for the combined entity, PAT declined 36% fromRs5.0bn in Q3FY10.
Ultratech Cement has announced its financial results for first quarter of the fiscal year 2010-11. The company has informed that, in this reviewed quarter the net profit figures gone down as compared to the same quarter in the last year.
Ultratech Cement is under the flagship of Aditya Birla group. The net profit of the firm was reported to be Rs 242.7 crore for the first quarter of the current year.
India's biggest cement producer, UltraTech has said that it is going to invest $1.8 billion for adding a capacity of 9 million tons. It will be done in another 3 years' time and is being done since the Indian economy is going to see a boost in the demand.
Indian cement industry has a capacity of 270 million tons and is the second largest in the world. The growth rate of the sector has been between 10-12 per cent last year and was driven mostly by the demand for the infrastructure sector.
India' leading cement company UltraTech Cement has acquired Dubai-based ETA Star Cement Company. Both the companies have decided to continue their cement operations in the United Arab Emirates (UAE), Bahrain and Bangladesh. The enterprise value of these assets has been estimated to be about Rs 1,700 crore.
Mr K. C. Birla, Chief Financial Officer of UltraTech Cement has informed that the company has planned its foreign acquisition plan. It would use a mix of internal accruals and borrowings to fund the acquisition in future.
Aditya Birla Group owned UltraTech Cement is set to become country’s top cement firm by acquiring its sister unit Samruddhi Cement. The proposal has already been approved by respective boards of both firms.
The stockholders of Samruddhi would get three shares of UltraTech per seven shares held in Samruddhi.
Currently, Swiss firm Holcim has a significant share in the 200-million tone cement market in India through ACC and Ambuja Cement.
Ultratech Cement, an Aditya Birla Group company, has registered a growth of 53 per cent in its profit after tax (PAT), which surged to Rs 250.9 crore for the quarter ended September 30, 2009, against Rs 164.19 crore for the quarter ended September 30, 2008.
In addition, net sales of the cement manufacturer has increased to Rs 1,541 crore in the latest quarter from Rs 1,396 crore of the corresponding quarter last year,
- Reportedly Pfizer and Allergan Considering a Combination
- Ted Cruz Unveils Flat Tax Plan, Says it will Spur Economic Growth
- Samsung’s Business Moving in the Right Direction; Quarterly Profits Surpass Estimates
- Feds December Rate Hike Agenda Pushes Dollar to 2-1/2-months High
- Comcast Corp Reports Gain in Q3 Revenue