NSE Symbol: ULTRACEMCO | BSE Code: 532538
UltraTech Cement Limited is one of the largest manufacturers of:
Besides India, UltraTech is also one of the best cement manufacturers in the global market. As a brand, it manifests innovation, reliability, and strength. These attributes motivate the engineers to expand their imagination limits to build better homes, structures, and buildings.
In the category of the white segment, the company has its brand name as Birla White, and their plants can manufacture 0.56 MTPA. With more than 100 RMC plants spread across 35 cities, it is one of the biggest concrete manufacturers in India.
Some subsidiaries of UltraTech Cement are :
The parent company of UltraTech is the Aditya Birla Group, which has already been on the list of Fortune's 500 best companies. The company employs more than 1,20,000 people, who belong to 42 nationalities across 36 countries.
The journey of UltraTech began more than 30 years ago and exported its cement in Europe, Middle East, Africa, and countries surrounding the Indian Ocean. In August 2000, it incorporated as one of the critical public limited companies with the brand name L&T Cement Limited.
However, in 2003, the company name was modified to UltraTech ChemCo Limited. In May 2004, the business acquired Larsen & Toubro Ceylon Pvt. Ltd.'s equity shares for Rs.4 crore with an aggregate consideration of Rs.23 crore. In July 2004, it was acquired by the Grasim Industries Limited ; and the company name was changed to UltraTech Cement Limited.
Narmada Cement Company Limited also became its subsidiary, and after the amalgamation, from 2005 to 2006, UltraTech increased its cement production capacity to 170 lakh tonnes. Therefore, this whole undertaking has transformed the company's overall capability. In 2008, UltraTech increased its cement production capacity to 182 lakh tonnes and further, set up 15 RMC (Ready Mix Concrete) industrial plans throughout the country.
In 2009, the company grew bigger with APCW (Andhra Pradesh Cement Works) and improved its cement production capacity to 219 lakh tonnes. They also set up new RMC plants to increase the size to 4.76 million cubic meters per annum.
In 2010, the company amplified its production capacity to 231 lakh tonnes and incorporated a fully-owned subsidiary firm in the UAE called UltraTech Cement Middle East Investments Limited. In 2014, it welcomed the new link of Gujarat Cement Dealers, and in 2015, it commissions the Rajasthan's plant.
Kumar Mangalam Birla â€“ The Chairman of UltraTech Cement Limited
Kumar Mangalam Birla besides being the Chairman of UltraTech also boards many essential companies both national and international. A few of the global companies include Thai Carbon Black, Aditya Birla Chemicals, Aditya Birla Minerals, Columbian Chemicals, Domsjo Fabriker, Alexandria Carbon Black, Terrace Bay Pulp Mill, etc.
He took over as a chairman in 1995 when he was just 28 years old, and this was due to the unexpected death of his father. During his tenure, he has transformed the company to great heights, and in the last 17 years, he has enhanced growth, accelerated the stakeholder value, and developed a meritocracy. He has managed to restructure the entire big business to rise as a national/global leader in the field of infrastructure.
K.K. Maheshwari â€“ The Managing Director of UltraTech Cement Limited
K.K. Maheshwari is one of the longest-serving members of Aditya Birla Group and has played various roles in the company. His experience and expertise bring multi-cultural, multi-geography, and multi-business exposure to the firm.
He is a CA (Chartered Accountant) with more than 38 years of experience, and under his leadership, he has developed an extensive profit in different businesses of the group. He has indeed brought a proper execution with rigor and has strengthened the innovation of new products.
Atul Daga â€“ Full-time Director and CFO (Chief Financial Officer)
Atul Daga has not only undertaken various initiatives but also contributed a lot in increasing the company's growth. He is a full-time director and the CFO at UltraTech. He is into creating a robust platform for evaluating M&A prospects, managing the investor relations, and setting the benchmark for long-term borrowings.
He is a CA (Chartered Accountant) with more than 29 years of experience and has also been a part of the company for more than two decades. In 1988, he joined Rajashree Cement as an Executive Assistant, where he worked with aluminum, cement, carbon black, and other chemical businesses. From 2010, he has developed a solid team and later, took over as the CFO of UltraTech in 2014.
The market cap of UltraTech Cement Limited is more than Rs.1,14,500 crore, as of March 2018.
UltraTech Cement Limited was founded in the year 1983 but the recent decades; it has reached great heights.
The company makes a net sales close to Rs.20,000 crore a year and net revenue of Rs.370 crore every year.
The company has become the fourth most significant cement player in the global market and is growing consistently from the previous decades.
During Q1 FY 2018, the company made a revenue of Rs.7,685.45 crore and a Net Profit After Tax of Rs.890.62 crore. In this quarter, UltraTech's consolidated capacity improved to 93 MTPA (Million Tons Per Annum) and enhanced the operational benchmarks. The EBITDA inclined by 10% from Q1 FY 17 and made an income of Rs.1,725 crore.
During Q2 FY 2018, UltraTech Cement Limited made revenue of Rs.6,739.35 crore and a Net Profit After Tax of Rs.431.24 crore. Comparing to the second quarter of the fiscal year 2017, the figures for this quarter significantly improved. The EBITDA inclined by 14% with an income of Rs.1,519 crore and the domestic sales increased by 18% with 12.41 Million Metric Tons.
During third quarter FY 2018, the company earned a revenue of Rs.7,745.43 crore and a Net PAT of Rs.421.47 crore. Due to the PMAY (Pradhan Mantri Awas Yojana) scheme, the sales spiked up, and the demand for cement increased drastically in the quarter. The domestic sales volume inclined by 37% at 15.1 M&T when compared to the third quarter of the fiscal year 2017. The cash profit also grew by 2% and operating EBITDA by 14%.
UltraTech's operating profit margin has grown each year in the last three years and had a better market leadership.
In spite of various acquisition/expansion projects undertaken, the company geared to a net debt-equity ratio of 0.17 during the financial year 2016.
In the last five years, the company's book value share has inclined by 14% and the total sales volume also inclined by 7% to 51.3 million tones in FY 2016 alone.
As far as the data and sales figures of the company are considered, there are valid reasons one should invest in its stocks.
The BSE or the Bombay Stock Exchange is Asia's oldest and first stock exchange. It is located in Mumbai, erstwhile Bombay, and it was formally established in 1875. An influential stockbroker and a businessman, Premchand Roychand, along with a handful of acquaintances, started the BSE journey in 1855. The BSE had its meetings under Banyan trees in its initial days. The group grew and eventually moved to a permanent place in 1874. BSEâ€™s office is very appropriately named â€˜Dalal Streetâ€™ which translated to Broker Street in Hindi. BSE operated as a floor trading exchange for a long time before ascending the digital ladder in 1995. They implemented an automated trading platform which had a capacity of 8 million per day. BSE went global in 2012, by joining the United Nations Sustainable Stock Exchange as a partner. Subsequently, in 2016, BSE established the first international exchange of India, called INX.
With an aim to induce transparency to the Indian capital market, the Indian Government implored a group of leading financial institutions for an effective solution. Accordingly, these financial institutions, along with the Government's support, established the first demutualized electronic exchange of India in 1992, known as the NSE. Since its inception, the NSE functioned on a totally automated screen-based digital trading system, which offered a great platform to connect the investor base of the entire country and offer them an easy trading facility. NSE was India's first electronic exchange and currently offers services pertaining to several segments, such as equity derivatives, clearing and settlement services in equity, trading, debt and currency derivatives, etc.
The NIFTY is National Stock Exchange of India's benchmark broad-based stock market index for the country's equity market. It lists 50 selected Indian companies across 12 sectors that own the largest and most liquid Indian securities. Hence, it is popularly called NIFTY 50. The Nifty index represents the weighted average of the stock value of those 50 companies. The India Index Services and Products or IISL, a company which is focused on an index as a core product, owns and manages the Nifty. Through one efficient portfolio, the Nifty exposes investment managers to the current status of the Indian market and helps in determining promising investment opportunities.
Similar to NSE's Nifty 50, BSE also has a stock market index known as Sensex. The word comes from the words 'Sensitive' and 'Index,' and is basically a portmanteau of the two. BSE 30 and S&P BSE SENSEX are two other names of this index. Sensex constitutes the top 30 financially flourishing and well-established companies from the ones listed on BSE. These companies typically represent diverse industrial sectors of the country's economy to ensure a holistic calculation. Usually, these are the companies that have the largest and most actively traded stocks. SENSEX is broadly reported through both print and electronic media in national as well as international markets. The scientifically designed indexing system is based on globally accepted construction and review methodologies. It is being calculated on the basis of a free-float market capitalization methodology since September 2003.