A “Strong balance-sheet, robust cash flows, gearing levels well within reasonable limits, market cap of over US $ 13 billion, stoke UltraTech’s future growth” says Chairman, Kumar Mangalam Birla
Despite the cement industry, “being snowed under the slowdown in the rural economy, the lack of investment from both the private and public sector coupled with the overall sluggish demand, UltraTech had put in a commendable performance during FY 2014-15, as well as sustained revenues and earnings during the first quarter of the current fiscal,” said Kumar Mangalam Birla, Chairman, Ultratech Cement while Addressing shareholders at UltraTech’s 15th AGM, last week.
Briefing the shareholders on strategic moves at UltraTech, Birla remarked, “The acquisition of the Gujarat units of Jaypee Cement Corporation Limited has been completed. The acquired facilities comprise of an integrated unit at Sewagram and a grinding unit at Wanakbori, with a combined capacity of 4.8 mtpa. The enterprise value was Rs. 3,800 crores besides the actual net working capital at closing”.
Furthermore, he mentioned that UltraTech’s Directors have approved the acquisition of the cement units of Jaiprakash Associates Limited, situated at Bela and Sidhi in Madhya Pradesh. “With this an additional 4.9 MTPA capacity and thermal power generation capacity of 180 MW will be added. This acquisition will raise UltraTech’s cement capacity in India from 60.2 MTPA to 65.1 MTPA. With the on-going projects underway, the capacity in India will grow to 71.2 MTPA by the end of FY 2015-16. The Company augmented its captive power capacity with the commissioning of 50 MW of thermal power plants and 22.5 MW through waste heat recovery. This brings the total thermal power capacity to 717 MW and waste heat recovery at 33 MW. It meets around 80% of UltraTech’s total power requirement”, he averred.
During the first quarter, UltraTech commissioned 15 MW Waste Heat Recovery Systems, taking the total power generation capacity from waste heat recovery to 48 MW.
UltraTech has always been a consistent performer in the Indian cement industry. Building capacities, augmenting its people strength, improving safety, caring for the environment and delivering financial performance reflects the robustness of its business model, commented Birla. Going forward, with the Government's thrust on infrastructure development, housing sector, smart cities, roads etc, Birla was confident that UltraTech is well positioned to meet the expected rise in demand and participate in the next phase of growth in the country.
In his words, “UltraTech has a strong Balance Sheet, robust cash flows and gearing levels well within reasonable limits. The Company enjoys the confidence of its stakeholders. It has a market cap of over US$ 13 billion. All of these help stoke the Company’s future growth and development.”
Good Corporate Citizen
As a responsible and caring corporate citizen, UltraTech has been sharing its success and contributing to improve the lives of the people. The Company has resolutely striven towards inclusive growth and sustainable development. Under the tutelage of the Aditya Birla Centre for Community Initiatives and Rural Development led by Rajashree Birla, the Company has been working in 407 villages, in proximity to its manufacturing plants. The major areas of focus are education, healthcare, sustainable livelihood, infrastructure development and social reform.