1. UTCL reported Q4FY11 revenues of Rs.4,490.1 cr up by 20.9% q-o-q. Its EBIDTA
rose by 48.2% q-o-q to Rs.1,086.8 cr. Net
Profit too improved by 127.9% q-o-q to Rs.726.8 cr, while NPM expanded by 760
bps q-o-q to 16.2% in Q4FY11. The Q4FY11
results include those of Samruddhi Cement w.e.f July 01, 2010 and hence are not
comparable y-o-y.
UTCL Quarterly Financials - Standalone Rs
On a consolidated basis, UTCL reported net sales of Rs.13,691.2
cr (vs Rs.7175.1 cr in FY10), Operating Profit of Rs.2,715.68
cr (vs Rs.2,048.83 cr in FY10) and Net Profit of Rs.1.367.4 cr (vs
Rs.1,095.2 cr in FY10). The consolidated results includes
financial results of its subsidiaries viz. UltraTech Cement Lanka
(Pvt.) Limited, UltraTech Cement Middle East Investments
Limited, Dakshin Cements Limited & Harish Cement Limited and
its interest in Joint Ventures viz. Madanpur (North) Coal
Company Private Limited & Bhaskarpara Coal Company Limited.
Balance Sheet
Some of the key highlights of the results are as follows:
� UTCL’s revenues in Q4FY11 were up by 20.9% q-o-q on account of
higher volumes and realisations. Other operating income
during the quarter has increased from Rs.25.6 cr in Q3FY11 to Rs.65.8 cr
on the back of write back of provisioning of
inventory made in earlier quarters.
� Domestic cement volumes stood at 10.22 mn tons in Q4FY11 vis-à-vis
9.3 mn tones in Q3FY11. Cement volumes were higher
in line with the industry. Blended realisations were improved q-o-q by
12.3% to Rs.4,196.4/tonne. White Cement sales stood at
1.47 lakh mt, up by 2% q-o-q while wall care putty volumes were similar at
0.8 lakh mt. Cement realisation stood at Rs.3,650
per ton vis-à-vis Rs.3,279 per ton in Q3FY11. However, Clinker realisations
were down from ~US$39 in Q3FY11 to ~US$35 in
Q4F11.
� EBIDTA Margins for UTCL expanded q-o-q by 450 bps to 24.2% in
Q4FY11. This has been mainly on account of higher
realisations. Raw material cost per ton rose by 13.4% q-o-q to Rs.554.8 on
the back of higher expenditure on slag, fly ash and

2. coal. Power and fuel cost showed no major change at Rs.902.4 per ton on
account of lower clinker sales in Q4FY11.
However, the prices of imported coal rose q-o-q from US$ 98/Mt to ~US$
130/Mt and excluding the clinker sales, power and
fuel cost rose by 2-3% q-o-q. UTCL meets ~33% of its coal requirement
through imports. The current average landed cost of
coal in April 2011 was ~US$ 130-140/Mt. Employee cost per ton rose by
7.4% q-o-q to Rs.202.7 per ton. Other expenditure
rose by 13.7% q-o-q to Rs.779.6 per ton as it includes inter unit clinker
freight transfers. Freight cost also was higher by 4.6%
q-o-q due to higher rail/road freight rates. EBIDTA per ton increased by
34% q-o-q to Rs.954.2 in Q4FY11 as the realisation
has increased more sharpl• Other income rose by 24.7% q-o-q to Rs.43.6 cr on the
back of sales tax refund and higher treasury income. Depreciation cost
rose by 3.5% q-o-q to Rs.226.7 cr while interest cost stood at Rs.82.9 cr. There was a
tax reversal (for earlier years) to the
tune of Rs.115 cr. Effective tax rate for Q4FY11 was a low 11.5% aiding profit growth.
As a result, net profit margins
expanded by 760 bps from 8.6% in Q3FY11 to 16.2% in Q4FY11.
• UTCL has an on-going capex plan of around Rs.11,000 cr. This will be spent over the
next three years to set up additional
clinkerisation plants at Chattisgarh (4.8 mtpa) and Karnataka (4.4 mtpa) together with
grinding units, bulk packaging terminals
and RMC plants across the country. The Karnataka plant is closer to Maharashtra and
through this plant, UTCL would supply
to the Western market also. Orders have been placed for major equipments for setting
up the projects. Consequent to these
expansions, the total cement capacity addition will be 9.2 mtpa taking the total capacity
of UTCL to 61.3 mtpa post expansion.
These expansions are expected to be operational from FY14 onwards and will be
funded through a mix of internal accrualsy in the northern and western regions, which
are the key markets of UTCL.