ULTRATECH CEMENT

RATIO AND INDUSTRY

Analysis

Submitted to:
Prof. Latha Ramesh

Group Members
Joyti Das (1421339)
Shikha Tripathi (1421353)
Sayon Das (1421328)

ULTRATACH CEMENT
LO.1
UltraTech Cement Limited (BSE: 532538) is India's biggest cement company and Indias largest
exporter of cement clinker based in Mumbai, India. The company is part of the Aditya Birla
Group and division of Grasim Industries. It has an annual capacity of 62 million tonnes.
Industry Profile
The Indian cement industry is the 2nd largest market accounting for 8% of the total global production.
The total capacity of India is over 360 tonnes(MT) in financial year 2013-14. Cement industry has
high correlation with the GDP of the country as it has cyclical demand. The housing sector is the
biggest demand driver for the cement industry followed by public infrastructure, commercial
construction and Industrial construction.

Cement Demand (%)

Housing sector
37%
50%

Infrastructure
Commercial Construction
Industrial construction

6%

7%

Recently increase in capacity but shallow demand has led to declining capacity utilisation below 70%.
This has resulted in pressure on prices due to over capacity and rise in costs of raw materials,
logistics, railways and freight.
Cement market is growing at a CAGR of 8.96% in 2014-15. It is projected at 421 MT by end of
2017. The per capita income stands at 190kg.

188 cement plants account for 97% of the total installed capacity and micro cement plants account for
the rest. According to data by Department of Industrial Policy and Promotion, FDI in cement industry
is $3.08 billion from 2000-14.
In the 12th Five Year Plan, the government plans to invest $1 trillion in infrastructure which is set to
increase industry demand and will increase capacity by 150MT.

The growth of Ultratech is the recent past is shown below taking the criterion of Networth, PAT and
Sales.

25000
22861

20000
15000

18313
13312

15234

23005
17097
Networth
PAT
Sales

12859

10000 10666
5000
0

1404

2011

2446
2012

2655
2013

2144
2014

Growth Story of the Utratech Cement

The above diagram shows the growth of capacity of cement production in MT in Utratech Cement.
Presently the annual capacity of the company is 62 MT.
The GDP of India is $1.9 Trillion, and PBITD of Ultratech Cement stands at $647 million. The
contribution to GDP is 0.34 %.
The Top Players with respect to Market Capitalisation in INR cr. is shown in the graph below.
90,000.00
80,000.00
70,000.00
60,000.00
50,000.00
40,000.00
30,000.00
20,000.00
10,000.00
0.00

Ultratech Cement has the highest market capitalisation followed by Shree Cements, Ambuja Cements,
ACC and Ramco Cements.
The market share of leading Cement Productions in India in terms of production in metric tonnes is
shown as below.

In terms of Production in metric tonnes

Ultratech ; 17%
ambuja; 8%
Others; 43% Binani; 3%
Jaypee; 12%
jk cement; 2%
shree cement; 5% ramco; 4% acc; 7%

Regulatory bodies governing Cement Industry & Associations

Competition Commission of India (CCI): In order to regulate and monitor the cement
industries and prevent formation of CARTEL.
It is the duty of the Commission to eliminate practices having adverse effect on competition,
promote and sustain competition, protect the interests of consumers and ensure freedom of
trade in the markets of India.
In June 2012, CCI imposed a fine of 63.07 billion (US$1.0 billion) 11 cement

companies for cartelisation. CCI claimed that cement companies met regularly to fix
prices, control market share and hold back supply which earned them illegal profits.
- Economic Times. 22 June 2012.

CMA: Cement Manufacturers Association (CMA), the apex representative body of

large cement manufacturers in India was established in 1961. It is a unique body in as

much as it has both the private and public sector cement companies as its members. It

is a registered body under the Societies Registration Act XXI of 1860.

CMA acts as a bridge between Indian cement Industry and the Government.

The cement industry ratio can be analysed from the following graph and table. It shows the trend
of cement industry from financial year 2011-2014.

Year End

2014

2013

2012

2011

Core EBITDA
Margin(%)

13.6

15.9

17.8

16.7

EBIT Margin(%)

10.3

12.5

13.8

13.6

Pre Tax Margin(%)

8.1

9.4

9.7

ROA(%)

4.1

5.9

6.8

6.8

ROE(%)
ROCE(%)

7
19.1

10
25.6

11.6
29.1

12.3
27.9

Asset Turnover(x)
Sales/Fixed Asset(x)

0.9
0.9

1
1

1
1

0.9
1

Working
Capital/Sales(x)

-14.4

-33.9

-26.1

138.7

Performance Ratios

KEY INDUSTRY RATIOS

4
3.5
3
Total Debt/Equity(%)
2.5
2
1.5
1 Interest Cover(x)
0.5
0
2011
2012

Current Ratio(x)

2013

Quick Ratio(x)

2014

EBIT Margin(%)
16
14
12
10
8
6
4
2
0
2011

EBIT Margin(%)

2012

2013

2014

60
50
40
Fixed Capital/Sales(x)
Receivable days
Inventory Days
Payable days

30
20
10
0
2011

2012

2013

2014

35
30
25
20

ROA(%)
ROE(%)
ROCE(%)

15
10
5
0

2011

2012

2013

2014

Fixed Asset Turnover Ratio: Fixed Asset turnover Ratio will measure the companys ability
to generate net sales from fixed investment i.e. plant & equipment.

We can measure this by taking comparison between metric tonnes produced by each plant and
investment in it. To find out the sales compared to metric tonnes produced we can calculate as
: Sales(except income from other sources)/Metric tonnes.

This ratio is utilised to measure in cement industry as the purchase of fixed asset is very high,
thus this ratio indicates how effective the investment in the fixed asset is. In recent times the
industry ratio has decreased due to economic and various other reasons.

Employee Utilization efficiency is also an important variable in the cement industry as it is

labour oriented industry. Since cement industry is employee intensive, utilisation ratio helps
to maximize the efficiency of companies employees. This can be accomplished by various
methods

as

training

and

development

methods.

This

will

lead

to

higher

productivity/employee, lower absenteeism etc.

Receivables and Payables Days

It is measure used to quantify a firms effectiveness in extending credit as well as collecting
debts. Since cement industry involves high debt and payables these ratios are very important

to test the efficiency of its activity. By maintaining these ratios the company will maintain its
cash reserve which is required for maintaining working capital.

Recently due to dwindling IIP and declining projection of production the receivable and
payable days are increasing which is a negative sign for the cement industry.

ROCE & ROI in the cement industry is high as there is continuous demand for cement in the
Indian market. However, the ROCE and ROI in the cement industry have declined.
ROCE Is a measure of companies profitability and efficiency with which capital is employed.

A higher ROCE indicates more efficient use of capital. Higher ROCE

indicates more use of capital and shows the effectiveness with which company is utilising
its capital. ROCE trend over the years is an important indicator of performance.

Capacity utilization is an important financial parameter in order to analyse utilization

efficiency. It a crucial metrics used to measure the rate at which potential output levels are
being used. The industry production units are growing at a CAGR of 8.96%.

The industry in recent times is operating below capacity as demand has not surged with
respect to increase in capacity of production. Thus, there is over production in the market.

LO.2

Ratio Analysis of Top Five

Companies Industry
CORE EBITDA MARGIN (%)
40
35
30
25
20
15
10
5
0

Ultratech
Shree Cements
Ambuja
ACC
Ramco

2010

2011

2012

2013

2014

A measurement of a company's operating profitability. It is equal to earnings before interest, tax,

depreciation and amortization (EBITDA) divided by total revenue. Because EBITDA excludes
depreciation and amortization, EBITDA margin can provide an investor with a cleaner view of a
company's core profitability.
Core profitability of Ultratech is inconsistent over the years. The performance has declined in
the year 2014.
Shree Cement has shown tremendous growth for the year 2014 and has been consistent in the
performance.

Low EBITDA Margin shows high operating expenses leading to lesser profitable operations.

RETURN ON ASSETS (%)

20
Ultratech

15
ROA (%)

Shree Cements

10

Ambuja
ACC

5
0
2010
-5

Ramco
2011

2012

2013

2014

Year

ROA is an indicator of how profitable a company is relative to its total assets. ROA gives an idea as to
how
efficient
management
is
at
using
its
assets
to
generate
earnings.
The ROA figure gives investors an idea of how effectively the company is converting the money it
has to invest into net income. The higher the ROA number, the better, because the company is earning
more money on less investment.
Ultratech has shown less variation in terms of ROA which suggests that the company is
managing its assets well and converting these assets into net income.
Shree Cement and Ramco have shown decline for the year 2014.
Reasons for this decline could be unwise investment on the part of the management,
inefficient use of company facilities, machinery etc.

RETURN ON EQUITY (%)

50

ROE (%)

40

Ultratech

30

Shree Cements
Ambuja

20

ACC
Ramco

10
0
2010

2011

2012
Year

2013

2014

Return on equity signifies net income as the percentage of shareholders equity. We can see that the
ability to generate profit from shareholders equity in decreasing over the years. The industry ROE %
is 11,6.8,7,10.4,and 7.1 from 2010 -2014.
We can see that ROE % is sharply declining for Ramco cement and Shree cement whereas
Acc and ambuja cements is consistent in nature in comparison. ROE % of ultratech is also
decreasing consistently.
When a company's ROE is declining, it signals that customers are no longer willing to pay as
much for its products or services as they were in the past or that the products and services
have become more expensive to offer. It could be that new competition has forced the
company to boost its budget for marketing, advertising, its sales force.
A declining ROE generally leads to a decline in the price of the company's stock. It sends out
the message that each rupee invested in the company is earning less and less each quarter.

RETURN ON CAPITAL EMPLOYED (%)

35
30

Ultratech

25

Shree Cements

20
ROCE (%)

Ambuja

15

ACC

10

Ramco

5
0
2010

2011

2012

2013

2014

Year

We can see that similar to ROE, industry ROCE is sharply declining. It measures how efficiently a
company is generating profit from its capital employed. We can see that Ambuja and Shree cements
has highest ROCE followed by ACC. ROCE is a long term profitability ratio and shows how capital is
performing in long term.

EBIT Margin (%)

30
2010

25

2011

20

2012

15

2013

10

2014

5
0
Ultratech Shree Cements Ambuja

ACC

Ramco

This ratio is a measure of a companys profitability on sales over a specific time period. Increase in
EBIT is mainly due to growth of net revenue, good cost control and strong productivity. Decrease in
EBIT largely results from high operating costs. Higher EBIT reflects more efficient cost management
or the more profitable business while comparing different companies in the same industry.

EBIT margin has decreased over the period of five years for all the five companies. Even
though the revenue from operations has increased, the EBIT margin has fallen mainly due to
increase in operating costs.

Some of the expenses that have increased the total operating expenses for the top five players
(as observed from the Statement of Profit and Loss) are1. Employee benefit expense
2. Freight and forwarding expense
3. Other expenses such as stores and spares consumed, packing materials
consumed, royalty and cess, advertisement and publicity

There is scope for improvement in cost control for all the top five companies

Ambuja Cements has remained fairly consistent in EBIT margin in comparison to the other
companies.

Ultratech and Shree Cements have been fluctuating over the years due to increase and
decrease in operating expenses.

Pretax Margin (%)

25
20

2010

15

2012

10

2013

2011

2014

5
0
-5

Ultratech

Shree Cements

Ambuja

ACC

Ramco

This is a company's earnings before tax as a percentage of total sales or revenues. The higher the pretax profit margin, the more profitable the company. The trend of the pretax profit margin is as
important as the figure itself, since it provides an indication of which way the company's profitability
is headed.

The main reason for difference in this ratio among the different companies is depreciation
charged ( different companies value depreciation with different methods)
1. Ultratech- straight line method
2. Shree Cements- written down value mathod

3. Ambuja- Depreciation on assets, other than Vehicles and Captive Power Plant related assets
consisting of Building and Plant & Machinery is provided on the straight line method and Vehicles
and CPP assets on the written down value method
4. ACC- same as Ambuja Cements
5. Ramco- straight line basis

Eventhough Pretax margin has decreased during the period of five years due to depreciation
and finance costs, Ambuja Cement has remained fairly constant where as Ultratech and Shree
Cements have fluctuated

Of the five companies, Shree Cements and Ramco have witnessed an all time low.

Asset Turnover
1.4
1.2
Ultratech

Shree Cements

0.8
Asset Turnover

Ambuja

0.6

ACC

0.4

Ramco

0.2
0
2010

2011

2012

2013

2014

Year

The asset turnover ratio measures the amount of revenue a company generates for every rupee of
assets it owns. Reviewing this ratio for a single year provides limited information, but we can
compare it over two or more years which will help us to identify any positive or negative trends in the
companys efficiency.

All the companies have managed to maintain this ratio at 1 (with negligible variations) i.e.
sales is almost equal to the assets owned thereby indicating that assets are efficiently utilized

However, there is scope for increasing efficiency such that more sales are generated with the
existing assets

Ultratech and Shree Cements have utilized available resources most efficiently in comparison
to the other top players

Sales to Fixed Assets

1.8
1.6
1.4
1.2
1
Sales/Fixed Asets 0.8
0.6
0.4
0.2
0
2010 2011 2012 2013 2014
Year

Ultratech
Shree Cements
Ambuja
ACC
Ramco

This is a ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a company's ability
to generate net sales from fixed-asset investments - specifically property, plant and equipment (PP&E)
- net of depreciation. A higher fixed-asset turnover ratio shows that the company has been more
effective
in
using
the
investment
in
fixed
assets
to
generate
revenues.

Asset utilization measures allow investors to understand how well a company uses its assets
in operations. Investors will typically track sales to fixed assets over time, looking for long
term patterns in this metric. Companies with ratios that are higher than their industry average,
or have ratios that increase over time, are desirable

Among the top five companies in the industry, Ramco industries has used its assets most
efficiently

Shree Cements has fluctuated in terms of fixed asset utilization and hence there is scope for
improvement in the same

Ultratech has remained stable during the period of five years

Ambuja and ACC have also fluctuated, however, have managed to remain within 1 and 1.2
thereby projecting more stability compared to Shree Cements

Asset utilization measures allow investors to understand how well a company uses its assets
in operations. Investors will typically track sales to fixed assets over time, looking for long
term patterns in this metric. Companies with ratios that are higher than their industry average,
or have ratios that increase over time, are desirable

Among the top five companies in the industry, Ramco industries has used its assets most
efficiently

Shree Cements has fluctuated in terms of fixed asset utilization and hence there is scope for
improvement in the same

Ultratech has remained stable during the period of five years

Ambuja and ACC have also fluctuated, however, have managed to remain within 1 and 1.2
thereby projecting more stability compared to Shree Cements

Working Capital to Sales

WC/Sales

800
700
600
500
400
300
200
100
0
-100
2010
-200

Ultratech
Shree Cements
Ambuja
ACC
Ramco
2011

2012

2013

2014

Year

A company uses working capital (current assets - current liabilities) to fund operations and purchase
inventory. These operations and inventory are then converted into sales revenue for the company. This
ratio is used to analyze the relationship between the money used to fund operations and the sales
generated from these operations. Lower working capital to sales ratio is desirable because it means
that the company is generating a lot of sales compared to the money it uses to fund the sales.

The top five companies other than Ramco have managed to maintain this ratio at the zero
level during the period of five years indicating that the companies are using the available
funds effectively and generating greater sales compared to the money used to fund the sales

During the period between 2010 and 2012, Ramco industries failed to use its working capital
effectively and hence the ratio rose to an all-time high (among the companies considered) of
673.7

LO.3
Qualitative Financial Ratios
Securities analysis that uses subjective judgement based on quantifiable information, such as
management expertise, industry cycle, strength of research and development and labour relations.
This type of analysis technique is different than quantitative analysis as it focuses on qualitative
aspects of the companys activity.

Employee Utilization efficiency is also an important variable in the cement industry as it is

labour oriented industry. Since cement industry is employee intensive, utilisation ratio helps
to maximize the efficiency of companies employees. This can be accomplished by various
methods

as

training

and

development

methods.

This

will

lead

to

higher

productivity/employee, lower absenteeism etc.

Employee Utilisation efficiency can be achieved by Sales (in Volume)/ No. of Employees

Capacity utilization is an important financial parameter in order to analyse utilization

efficiency. It a crucial metrics used to measure the rate at which potential output levels are
being used. The industry production units are growing at a CAGR of 8.96%.

Capacity utilisation can be calculated as (Actual Output- Potential Output)/Potential Output

*100.

Product Return Ratio: Sales Return to gross sales ratio allows us to understand the extend
of product returns and quantity returns using gross sales.

ULTRATECH
Employee Utilization Efficiency Ratio
Capacity Utilization Ratio

ACC

RATIOS
Net Sales/ total employees
2007800000000/13117
79% (page 3 annual report 2014)

RATIOS

Employee Utilization Efficiency Ratio

1148100000000/9028

Capacity Utilization Ratio

78% (page 15 annual report 2014)

AMBUJA
Employee Utilization Efficiency Ratio

RATIOS
997800000000/5882
1.696382

Capacity Utilization Ratio

74.53%

Ramco

page 7

RATIOS

Employee Utilization Efficiency Ratio

368300000000/1600

Capacity Utilization Ratio

72.43%

page 7

LO.5
CASH FLOW STATEMENT

Cash from Operating Activities

1. The top players in the cement industry have had positive cash flow from
operating activities which suggests that there is efficiency in the core
activities
2.

Trade payables is positive for all the companies indicating that the
companies have a long credit period

3. Trade receivables is negative for all the companies indicating that the
companies extend credit to its customers
4. Credit received and credit extended are the major tools for maintaining
working capital stability

Cash from Investing Activities

1. Most of these top companies have investments in the form of bank deposits
and subsidiary companies
2. Sale and purchase of fixed assets also affect the cash from investing activities
3. Dividend and Interests received are another source of income from investing
activities
4. Investments made exceed the receipts from such investments. Hence, the
cash from these activities is negative
5. Negative cash from investing activities is a sign of expansion and is
consistent throughout the industry

Cash from Financing Activities

1. Income is in the form of proceeds from long term and short term borrowings
2. Expenses are mainly in the form of repayment of loans and, dividend paid
and other financial charges
3. For most of the companies, cash from financing activities has been negative
throughout the period of five years. This indicates that the top players are
consistent in repayment of loans as well as dividend.

Despite the negative cash from investing and financing activities, all the top players have had a
positive closing cash balance throughout the period of five years

This suggests that the companies are efficient in the core activities, hence generating a strong
positive cash flow from the same

Judging by the performance of the top five players in the industry, we can say that the
industry is performing well

Also, the negative cash from financing and investing activities indicate expansion tendencies

Annual Report Highlights

The acquisition of the 4.8 metric tonne/annum of Gujarat Cement Unit of Jaypee
Cement Corporation at cost of US $636 million represents of the company is the west.
During the year Ultratech clinkerisation plant with cement grinding capacity of 1.45
metric tonne/annum at cement, 1.6 metric tonne/annum in Odisha and thermal power
plant of 30 mega watts and 25 mega watts at rajashree cement works.

During the year Ultratech company commissioned a 10,000 Tonnes per day
clinkerisation plant together with a cement grinding capacity of 1.45 metric tonne per
annum at rajashree cement works, Karnataka; a 1.6 metric tonne per annum cement
grinding unit in Odisha and thermal power plants of 30 mega watts at rawan cement
works and 25 mega watts each at rajashree cement works and Andhra Pradesh cement
works at a total capex of US $ 450 million (` 2,562 crores).

Companys installed capacity has been scaled up to nearly 62 million tons. In the next
2 years, we expect it to touch 70 million tons when all of its ongoing projects will be
fully commissioned.

We continue to fast track our talent from our management cadre comprising of
38,200 colleagues, 13% have been promoted, 20% have changed roles and 12% have
moved location during the year.

We are recognized as an employer that offers a World of Opportunities and is

concerned about the professional growth of its people.

Ranked No. 1 in the Nielsen Corporate Image Monitor

The Indian cement industry was impacted by these developments. Although the year
began with hopes of rise in cement demand on the back of government spending in
the run up to the general elections, overall the demand remained sluggish on account
of lack of government spending, prolonged monsoon, gloomy political environment
including policy matters, shortage of sand in major cement consuming states and low
off-take from the infrastructure and housing sectors

More capacity addition in the recent past compared to incremental demand continued
to plague the industry. This resulted in sector capacity utilisation declining to below
70%. The demand-supply mismatch is expected to stay for some more time. The
subdued demand and over-capacity resulted in prices remaining under pressure.
Further, logistics and raw material costs continued to rise given the increase in
railway freight and high speed diesel prices. Though prices of imported coal softened,
the depreciation in rupee negated the benefit.

The outlook in the short term continues to remain challenging, demand growth in the
long term is likely to be around 8% on the back of housing and infrastructure spends
as outlined in the 12th five year plan (2012-17).The total investment in the
infrastructure sector in the 12th Five year plan is estimated to be USD 1 Trillion.

Upon commissioning of Cement grinding capacity of 3.05 MMTPA during the year, Ultratech
Companys total Cement capacity stands at 53.95 MMTPA
in India.
Company has produced 40.79 million tonnes of cement,
which is marginally up by 2% over the last year, though
capacity utilisation declined to 79% due to the lag between
the capacity expansion and demand growth.
Domestic cement volume grew by 2% over the last year as
compared to expected industry growth of around 1%.
Cement exports volume remained in line with the last year,
though clinker export volume declined to 0.11 million
tonnes from 0.33 million tonnes.

The overall net turnover at ` 20,078 crores is on par with the previous year. The impact of
increase in sales volume has been negated by the decline in cement sales prices. During the
year overall cement prices remained under pressure in the absence of demand pick-up and the
over-capacity situation in the sector. This has resulted in decline in domestic cement
realisation by 4% at ` 4,097 per tonne against ` 4,253 per tonne in FY13.

External factors like the devaluation of the rupee and a regular hike in diesel prices
have impacted costs. Ultratech Companys continued focus on controlling cost and
optimisation of fuel mix helped in curtailing cost to some extent.

(i) Energy cost: The overall energy cost eased by 5% at ` 948/t over the previous
year. The gain in cost has been achieved with an ongoing focus on improving
efficiencies in consumption and increasing usage of pet coke and alternative fuel.

Besides this, the softening in imported coal prices also served to contain the energy
cost though the impact was negated with the devaluation in currency.

(ii) Input material cost: The mining cost of limestone and landed cost of all major
input material have increased in the range of 10-15% compared to the previous year.
A larger part of this rise is linked to the regular hike in high speed diesel prices, which
grew by more than 20% over the previous year. Packaging material cost also
witnessed a substantial increase of around 15% on account of higher PP granule prices

(iii) Freight and Forwarding expenses: Freight and forwarding expenses was
impacted the most during the year. In the last Railway Budget, freight charges have
been linked with the Fuel Adjustment Charges (FAC) and as a result rail freight has
amplified by more than 6% from the beginning of the year. Apart from this, regular
hike in diesel prices (more than 20%) has impacted the road logistics cost
substantially. However with the various cost saving measures undertaken, Ultratech
Company could restrict the overall cost increase to 6% from ` 925/t to ` 976/t.

(iv) Employee costs: Lower retiral provision

restricted the increase in employee cost to 5%
over FY13

Net Capital Expenditure: The capex expenditure

of 2,228 is in line with Ultratech Companys ongoing capex programme. During the year
Ultratech Company has invested mainly in
brownfield capacity expansion projects in the
States of Karnataka, Chhattisgarh and Rajasthan,
a packaging terminal in Maharashtra, Thermal
Power and Waste Heat Recovery Plants, Jetty
Expansion in Gujarat, Ready Mix Concrete Plants and other normal capex.

Increase in investments: Ultratech Company has made an additional investment of `

107 crores in its wholly-owned subsidiary, UltraTech Cement Middle East
Investments Limited (UCMEIL) in the UAE for acquiring the balance equity stake in
ETA Star cement companies. With this, the ETA Star cement companies have become
wholly-owned subsidiaries of UCMEIL. Ultratech Company has also acquired 100%
equity of Bhagwati Lime Stone Company Private Limited (Bhagwati) for ` 11 crores.
Bhagwati has a limestone mining lease in Rajasthan.

Repayment of Borrowings: Ultratech Company has repaid total long-term borrowings

of ` 597 crores. Further, Ultratech Company has also raised long-term debt of ` 577
crores mainly in the form of External Commercial Borrowings (ECBs) for the various
projects of Ultratech Company. Besides this it has also repaid short term borrowings
net of availment for ` 190 crores.

During the year the Company has commissioned 1. Clinkerisation plant of 3.30 MMTPA, 25
MW TPP and 1.45 MMTPA cement plant
at
2. Rajashree Cement Works in Karnataka;
3. 1.6 MMTPA cement mill at Jharsuguda
Cement Works in Odisha.
4. 25 MW TPP in Andhra Pradesh Cement
Works;
5. 30 MW TPP in Rawan Cement Works in
Chhattisgarh and
6. 6.5 MW Waste Heat Recovery System at Awarpur Cement Works in Maharashtra
7. The Competition Commission of India (CCI) upheld the complaint of alleged
cartelisation against certain cement manufacturing companies including Ultratech
Company. The CCI has imposed a penalty of ` 1,175.49 crores on Ultratech Company.
Ultratech Company has filed an appeal against the Order before the Competition
Appellate Tribunal (COMPAT).
8. COMPAT has granted stay on the CCI order on condition that Ultratech Company
deposit 10% of the penalty, amounting to ` 117.55 crores, which has been deposited.
9. Ultratech Company has adequate liquidity and a strong balance sheet. CRISIL has reaffirmed the CRISIL AAA/Stable and CRISIL
A1+ rating for Ultratech Companys long
term borrowings and bank loan facilities
respectively. Ultratech Company has a debt
outstanding of ` 5,199 crores, treasury
investments of ` 4,841 crores and net debt of `
358 crores.
10. Ultratech Company has raised long term
borrowings of ` 571 crores by way of External
Commercial Borrowings (ECBs). These are
being utilised for financing the various projects
of Ultratech Company. All Foreign Currency
borrowings outstanding are hedged.
11. Ultratech Company has repaid Long Term borrowings (Non-Convertible Debentures
and External Commercial Borrowings) amounting to ` 510 crores during the year.

References
www.ibef.org
www.ultratechcement.com
www.acclimited.com
www.ambujacement.com
www.ramco.com
www.economictimes.com
www.investopedia.com
www.wikipedia.com
www.cci.gov.in
www.cmaindia.org