UltraTech Cement (ULTRACEMCO) Q4 11/12 earnings summary

Executive summary

• FY12 net turnover was ₹18,166 crore and net profit ₹2,446 crore; cement production reached 39.43 MMT, with effective capacity utilisation of 83%.

• Demand recovery strengthened in H2, but high input costs, surplus capacity and subdued economic growth kept industry conditions challenging.

Financial highlights

• FY12 net turnover rose 18% to ₹18,166 crore vs recast FY11; operating profit (PBIDT) increased 31% to ₹4,519 crore.

• PBIT was ₹3,617 crore, up 40%; PBT was ₹3,393 crore, up 51%; net profit was ₹2,446 crore, up 42% vs recast FY11.

• Net revenue from operations was ₹18,313 crore; total revenue including other income was ₹18,685 crore.

• Cash from operations was ₹3,443 crore; net capital expenditure was ₹3,165 crore, and cash and cash equivalents closed at ₹188 crore.

Outlook and guidance

• Cement demand was forecast to grow at an 8.5% CAGR in the near term; 71 mt of industry capacity was expected to start up between FY13 and FY15.

• Expansion projects were on track to begin operations from early FY14, adding 10 mtpa of cement capacity to reach 62 mtpa.

• Management expected demand support from housing, infrastructure and the 12th Five Year Plan, while noting near-term supply-demand and input-cost pressures.