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UltraTech Cement gains on strong Q2 outcome

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Capital Market
Last Updated : Oct 20 2014 | 10:30 AM IST

UltraTech Cement advanced 3.71% to Rs 2,409 at 09:18 IST on BSE after consolidated net profit rose 48.01% to Rs 414.24 crore on 18.52% rise in total income to Rs 5821.48 crore in Q2 September 2014 over Q2 September 2013.

The company announced Q2 results on Saturday, 18 October 2014.

Meanwhile, the S&P BSE Sensex was up 357.91 points or 1.37% at 26,466.44.

On BSE, so far 2,175 shares were traded in the counter, compared with an average volume of 17,307 shares in the past one quarter.

The stock hit a high of Rs 2,429.65 and a low of Rs 2,390 so far during the day. The stock hit a record high of Rs 2,868 on 18 June 2014. The stock hit a 52-week low of Rs 1,635 on 14 January 2014.

The large-cap cement company has an equity capital of Rs 274.40 crore. Face value per share is Rs 10.

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UltraTech Cement said that the combined cement and clinker sales rose to 10.35 MnT in Q2 September 2014 as compared to 9.22 MnT in Q2 September 2013 while it was 3.02 LmT in Q2 September 2014 as compared to 2.94 LmT in Q2 September 2013 for white cement and wall care putty.

During the quarter, domestic cement sales volume increased by 11% on the back of higher demand and additional volume from the acquired Units in Gujarat. Costs were impacted mainly on account of increase in prices of petcoke, input material and royalty on limestone, UltraTech Cement said.

UltraTech Cement said that the company's on-going capex is on track. The company commissioned a 1.4 MnT cement mill at Rajashree Cement, Karnataka and a 25 megawatt thermal power plant at Tadipatri, Andhra Pradesh. With this the company's total cement capacity in India stands at 60.2 Mnt and the total power capacity (including WHRS) at 733 MW. This caters to around 80 % of the Company's power requirement, UltraTech Cement said.

In its outlook, UltraTech Cement said that cement demand is slated to grow over 8%. The key value drivers will be renewed government focus on housing and infrastructure spending.

In terms of the scheme of arrangement between Jaypee Cement Corporation (JCCL) and the company and their respective shareholders and creditors (the scheme) 27,261 additional equity shares of the company of Rs 10 each credited as fully paid-up has been allotted to the equity shareholders of JCCL in terms of the scheme as final consideration. The financial results of the acquired units have been combined with the company's financial results with effect from 12 June 2014. As a result, figures for the three months and six months ended 30 September 2014 are strictly not comparable with previous periods.

UltraTech Cement also said that the board of directors of the company at its meeting held on 18 October 2014, extended the term of appointment of Mr O. P. Puranmalka, Managing Director, for a period of one year from 1 April 2015 to 31 March 2016 and appointed Mr. Atul Daga as Chief Financial Officer of the company in place of Mr. K. C. Birla, with effect from 1 December 2014.

UltraTech Cement, part of the Aditya Birla Group, is a leading cement manufacturer in India.

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First Published: Oct 20 2014 | 9:20 AM IST

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