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.
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.
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...
GOVERNMENT OF INDIA
MINISTRY OF PLANNING
UNSTARRED QUESTION NO 6678
ANSWERED ON 08.05.2013
AADHAAR CARD AS MANDATORY DOCUMENTS
6678 . Shri RUDRAMADHAB RAY
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?
MINISTER OF STATE FOR PARLIAMNETARY AFFAIRS & PLANNING (SHRI RAJEEV SHUKLA)
(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 uidai.gov.in/easearch.aspx.
(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.