Companies & Sectors
UltraTech Cement says FY14 outlook remains challenging

The Aditya Birla group company has reported disappointing results due to higher logistics and raw material cost. The cement producer expect demand to pick up in housing and infrastructure to drive growth rate to 6% in FY14, and 8% over the longer term

UltraTech Cement, an Aditya Birla group company, reported a 13.5% lower first quarter net profit at Rs673 crore from Rs778 crore a year ago, due to increasing trend in logistics and raw material costs on increase in railway freight and diesel prices.

The company said, benefits of lower commodity price were partly offset by the depreciation in the rupee.  During the quarter to end-June, UltraTech’s net sales also declined to Rs4,958 crore from Rs5,072 crore same period last year.

In a release, UltraTech, said, “The outlook continues to remain challenging. Demand growth in FY14 is likely to be around 6%, though over the long run, it is likely to be over 8%. The key value drivers will be housing demand and infrastructure spending.”

During the first quarter, the cement maker’s combined domestic cement and clinker sales was 9.88 million tonnes compared to 9.94 million tonnes last year, while it was 2.50 LmT for white cement and wall care putty.

The clinkerisation plant of 3.30 million metric tonne in Karnataka was commission and the UltraTech’s board have sanctioned a capital expenditure to the tune of Rs2,100 crore towards setting up of grinding unites and ready-mix concrete plants across the country, as well as modernisation. The total capex of the company is around Rs13,700 crore. The company is in the process of ramping up capacity by another 10 million tonnes by 2015 and is expected to boost capacity to 64.45 million tonnes.

Moneylife had recommended this stock, to Stockletter subscribers, at Rs1,466.

On Monday, UltraTech Cement ended marginally higher at Rs1880 on the BSE, while the 30-share Sensex closed the day marginally down at 19,593.


Madras Cements Q1 net profit falls 44.7% on high expenses, low sales

Seasonal slack in demand and higher expenses affected Madras Cement’s top and bottomline during the June quarter. It was also found out that FIIs have been taking an interest in the company by hiking their stake

Madras Cements Ltd has posted a net profit of Rs68.85 crore for the June quarter compared with Rs123 crore same quarter last year, due to higher expenses and seasonal slack in demand due to monsoons. For the quarter to end-June, the cement producer’s total revenues declined marginally to Rs989 crore from Rs992.55 crore a year ago period.

Total expenses, including depreciation, during the first quarter stood at Rs839.70 crore, 10.98% higher than the Rs756.20 crore recorded in the same period last year. Other expenditures include, Rs7.23 crore towards corporate social responsibility activities, out of which Rs6 crore has been donated to Raja Charity Trust, a public charitable trust for establishing an engineering college.

According to the Moneylife database, the company is quoting at a market capitalisation of 5.32 times operating profit and an impressive 15% return on net worth.

In compliance of an interim order passed by the Competition Appellate Tribunal (CAT), the company has deposited Rs25.86 crore, being 10% of the penalty levied by the Competition Commission of India (CCI) for alleged cartelisation. Pending final judgement, no provision has been considered necessary, according to the company.

Madras Cements has seen foreign institutional investors (FIIs) taking considerable interest in the company. The FIIs, as on 30 June 2013, hold 17.96% of the company’s share outstanding, up from 5.76% in December 2012. Meanwhile, the DIIs hold more or less the same amount, 17.56%, but lesser than the 23.69% stake it had in December 2012. The promoters’ shareholding remains at 42.32% same throughout from December 2012 to June 2013.

Moneylife had earlier covered this stock in its Street Beat section and the same can be accessed here (Madras Cements: Solid foundation). It had recommended the stock at Rs150.70.

Madras Cements closed Monday 3.1% down ar Rs169.5 on the BSE, while the benchmark, Sensex ended marginally down at 19,593.


Aadhaar not mandatory for LPG subsidy, school admission

As per the answer provided in the Lok Sabha by Rajiv Shukla, Aadhaar is not mandatory to avail subsidy for LPG cylinders, admission to private aided schools and opening a saving bank account

The United Progressive Alliance (UPA) government and the Unique Identification Authority of India (UIDAI) have been complicit in the coercion and bullying that is now part of the UID enrolment process, and its silent acquiescence while people are threatened with exclusion from services and benefits if they have not enrolled. While minister for petroleum Veerappa Moily has been saying that all consumers of liquefied petroleum gas (LPG) will have to submit their Aadhaar numbers to receive subsidy, the union government itself has admitted that it is not mandatory.


Replying to an un-starred question on 8 May 2013, Rajiv Shukla, minister of state for parliamentary affairs and planning said, "Aadhaar card is not mandatory to avail subsidized facilities being offered by the Government like LPG cylinders, admission in private aided schools, opening a savings account etc."


Rudramadhab Ray, a member of Paliament from Kandhamal constituency from Odisha, had asked the question.

Here is the question and the answer provided by the minister...

( )










ANSWERED ON    08.05.2013






Will the Minister of PLANNING be pleased to state:-


(a) whether Aadhaar Card is mandatory to avail subsidized facilities being offered by the Government like LPG cylinders, admission in private aided schools, opening a savings account etc.;


(b) if so, the details thereof;


(c) the details of authorized centres for enrolment for Aadhaar Card in Delhi and NCR Region; and


(d) The steps proposed to be taken to open more centres in every zone to facilitate the residents to get their names enrolled for Aadhaar Card? 






 (a) to (b): Aadhar Card is not mandatory to avail subsidized facilities being offered by the Government like LPG cylinders, admission in private aided schools, opening a savings account etc.


 (c) : There are approximately 195 centres operational in Delhi. Details of centres are available at the URL


 (d): Government of National Capital Territory of Delhi (GNCTD) has appointed a total of 11 (eleven) registrars for Aadhaar enrolments, including all Deputy Commissioners, and two other department. The enrolment centres are being operated as per local requirement and availability of enrolment kits by the registrars on day-to-day basis. The GNCTD has also engaged more vendors recently to augment the capacity.




Mukesh kamath

3 years ago

All that rajiv shukla said is aadhaar is not mandatory for LPG subsidy as on 8th may,2013. DBTL started on 1st June and by Aug 31st this year in 19 DBTL districts it would become mandatory. Then money life can publish a few more articles of injustice like this.


3 years ago

The UPA Govt is taking full advantage of the absence of privacy laws in India and thrusting it down the citizens of the country through indirect pressure tactics . There is only one question which I need to ask , do as I human being have a right to privacy in this country or not . It is time for a PIL to be filed in the Supreme Court which comes up for a quick hearing on the legal validity of the Aadhar scheme which has not yet been approved by Parliament .

Vinay Isloorkar

3 years ago

These columns have a known anti Aadhaar stance. So be it. We have reconciled to CCTV cameras, strict regimen while booking into hotels, including biometrics etc., compulsory e filing of tax returns , so on and so forth. Purely on grounds of transparency, our intelligenstia should encourage the Aadhaar campaign. These columns should outgrow Nandan bashing and engage constructively.



In Reply to Vinay Isloorkar 3 years ago

Why not pass the same first in parliament before blaming Moneylife ?


In Reply to Vinay Isloorkar 3 years ago

Wrong.. These columns have a known 'Right to Privacy' stance.And they have every right to support the same. The Aadhar card was introduced on an optional basis and now scheme after scheme is being tied to it. Its just not the personal details which are being recorded , they are even taking Iris scans and Finger prints which is scary. Given the EFFICIENCY with which our govt is know to handle database, just imagine if a BREACH of the server happens and sensitive data falls into the wrong hands. Just imagine a situation wherein a govt. agency can replicate ur finger prints at a crime site and get u arrested. How does that feel?

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