Responding to UltraTech Cement's poor quarterly results, shares of the cement giant shed as much as 4.76 per cent in early trade on Monday.
UltraTech Cement on Saturday announced a year-on-year decline of 52 per cent in net profit to Rs 260 crore for the July to September quarter. The figure fell short of analysts estimates by 33.3 per cent. A group of analysts surveyed by Bloomberg had projected a net profit of Rs 396 crore for the company's September quarter.
UltraTech Cement, the flagship of Aditya Birla Group, on Wednesday confirmed that it had acquired a Gujarat-based unit of Jaypee Group in a deal worth Rs 3,800 crore.
The acquisition of the 4.8 million tonne (mt) unit will increase UltraTech Cement's capacity by nearly 9 per cent to 59 mt. The unit is currently operating at a capacity utilization of around 62 per cent. UltraTech has plans to increase it to 85 per cent.
To fund the deal, UltraTech will assume Rs 3,650 crore of debt and issue equity worth Rs 150 crore to Jaypee.
India's largest cement maker Aditya Birla Group is very close to concluding a deal to acquire a controlling stake in Jaiprakash Associates' 5 mtpa Gujarat facility.
People familiar with the deal revealed that Aditya Birla Group's flagship firm UltraTech Cement will buy 51 per cent stake in the Gujarat facility from Jaypee Cement Corp's for around Rs 4,000 crore.
On Tuesday Samruddhi Cement, ended its first day of trade at Rs.484.90.It is the company to which Grasim has transferred its 25.65-million tonnes capacity as per the restructuring announced earlier for Aditya Birla’s cement business. The price at which the company traded in the market was far below the expectation of the analysts.
Samruddhi and Ultrachic will be shortly merged in the ratio of four shares of UltraTech for seven shares held (of face value of Rs 5) of the recently-listed entity. And the stock price of Samruddhi is expected to closely track that of the merger ratio.
On Monday, Madras Cement, one of the big cement players reported its financial performance. And it stated that the net profit of the company has gone down by 2.72 per cent.
This means that the final profit of the company was Rs. 353.6 crore for the whole year ending March 31,2010. Last year the profit stood at Rs. 363.5 crore, the filing made by Madras Cement to the BSE said.
Total income increased from Rs. 2,471 crore for 2009 to end at Rs. 2,821 crore for this year. The income has gone up; the difference is not very big.
Following a continuous downward spiral in prices, Indian cement majors, including UltraTech, Grasim and India Cement, have reported a fall in realizations, and thus de-growth, during fourth quarter in the Financial Year 2010.
The results, meanwhile, have came as a shocker for market analysts, who had estimated good first-quarter results following an increase in cement prices after the budget.
Hyderabad-based cement manufacturer Sagar Cements Ltd has announced its annual financial results for the fiscal year 2009-10 and has managed to register a marginal hike in net profit. The company has posted a net profit of Rs 19.37 crore for the financial year that ended in 31st March, 2010. This net profit figure has grown marginally up by 1.73 % as compared to the preceding year.
As per Heidelberg officials, the cement prices are expected to stabilize in coming weeks. There has been a slight decline in demand for cement in India.
As a result of which the prices of the item has also gone down by Rs 5-20 per bag in various part of the country. Executive President JK Cement, Mr. R G Bagla has informed that cement price is likely to decline more due to the recent demand slowdown.
At the advent of monsoon, this price will go down again. However there won't be any further disturbance in the prices before the onset of monsoons.
ACC, the country's second-largest cement maker, on Thursday swung to a flat net profit in the March quarter, triggered by marginal jump in sales.
The company revealed to have grabbed a net profit of Rs 405.1 crore in the March quarter compared to Rs 404.8 crore reported in the year-ago period.
While, its standalone net sales marked a climb touching Rs 2,101 crore versus Rs 2,055 crore, the previous year.
The consolidated net profit stood at Rs 393 crore rising 1.6% in the March quarter.