report on ultratech cement

7/28/2019 Report on Ultratech Cement

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A

REPORT ON

FINANCIAL ANALYSIS

OF

ULTRATECH CEMENT LIMITED

SUBMITTED TO:

DR. P.K.PRIYAN

PREPARED BY:

SHWETA GODHANI (11039)

SEMESTER II

DIVISION A

G.H. PATEL POST GRADUATE INSTITUTE OF BUSINESS

MANAGEMENT

SARDAR PATEL UNIVERSITY


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INDEX

SR. NO. PARTICULARS PAGE NO.1 OVERVIEW OF THE COMPANY 3

2 PROFIT AND LOSS ACCOUNTS 5

3 BALANCE SHEET 7

4 CASH FLOW STATEMENT 9

5 RATIO ANALYSIS 11

6 SHAREHOLDING PATTERN 20

7 DIDVIDEND DISTRIBUTION 21

8 BIBLIOGRAPHY 22


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OVERVIEW OF THE COMPANY

The Aditya Birla Group, founded in 1957, is an Indian multinational conglomerate

corporation headquartered in Mumbai, India. It operates in 33 countries with more than

133,000 employees worldwide. The group has diversified business interests and is dominant

player in all the sectors in which it operates such as viscose staple fibre, metals, cement,

viscose filament yarn, branded apparel, carbon black, chemicals, fertilisers, insulators,

financial services, telecom, BPO and IT services.

The Aditya Birla group is a US$ 35 billion conglomerate which gets 60 % of its revenues from

outside India. The Aditya Birla Group has been adjudged the best employer in India and

among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study

2007. The origins of the group lie in the conglomerate once held by one of India's foremostindustrialists Mr. Ghanshyam Das Birla.

The Aditya Birla Group is ranked No. 4 in the world and No.1 in Asia Pacific in the Top

Companies for Leaders study (2011), conducted by Aon Hewitt, Fortune magazine and RBL.

The Aditya Birla Group is the eighth-largest cement producer in the world. It was

incorporated on 24 August 2000 as L&T Cement Limited. The Cement business of Larsen &

Toubro Limited demerged and vested in company in 2004. The Grasim acquired

management control in July 2004. Together with Grasim, one of the largest cements

producers in India. The Aditya Birla Group has renamed L&T Cement, which it had earlieracquired from Larsen & Toubro, as `UltraTech', making it the third big cement brand of the

flagship Grasim Industries. Its name changed t0o UltraTech Cement Limited with effect from

14 October 2004. The Narmada Cement Company Limited amalgamated with UltraTech in

May 2006. The Cement business of Grasim demerged and vested in Samruddhi Cement

Limited in May 2010. The Samruddhi Cement Limited amalgamated with UltraTech Cement

Limited in July 2010.

UltraTech Cement Limited and its subsidiaries have an annual capacity of 52 million tonnes,

making it among the top 10 producers of cement globally. UltraTech is also the largestmanufacturer of White Cement in India. The Group now has over 31 million tonnes perannum (TPA) of cement production capacity, of which 17 million TPA comes from UltraTech.

This makes the Group the eighth largest cement manufacturer in the world.

UltraTech Cement has 11 integrated plants, 15 grinding units, five bulk terminals and 92

RMC plants spanning India, UAE, Bahrain, Bangladesh and Sri Lanka. UltraTech Cement is

also India's largest exporter of cement clinker reaching out to meet demand in countries

around the Indian Ocean, Africa, Europe and the Middle East. The company's subsidiaries

are Dakshin Cements Limited, Harish Cements Limited, UltraTech Cement Lanka (Pvt.) Ltd,and UltraTech Cement Middle East Investments Limited, which completed the acquisition of
http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Mumbai,_Indiahttp://en.wikipedia.org/wiki/Ghanshyam_Das_Birlahttp://www.ultratechcement.lk/index.htmlhttp://www.ultratechcement.lk/index.htmlhttp://en.wikipedia.org/wiki/Ghanshyam_Das_Birlahttp://en.wikipedia.org/wiki/Mumbai,_Indiahttp://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Multinational_corporation


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ETA Star Cement together with its operations in the UAE, Bahrain and Bangladesh, and

acquired management control.

Most of the plants have ISO 9001, ISO 14001 and OHSAS 18001 certification. In addition,

two plants have received ISO 27001 certification and four have received SA 8000certification. The process is currently underway for the remaining plants. The company

exports over 2.5 million tonnes per annum, which is about 30 per cent of the country's total

exports. The export market comprises of countries around the Indian Ocean, Africa, Europe

and the Middle East. Export is a thrust area in the company's strategy for growth.

UltraTech's products include Ordinary Portland cement, Portland Pozzolana cement and

Portland Blast Furnace Slag cement.

Ordinary Portland cement

Portland Blast Furnace Slag cement

Portland Pozzolana cement

Cement to European and Sri Lankan norms

ORDINARY PORTLAND CEMENT: Ordinary Portland cement is the most commonly used

cement for a wide range of applications. These applications cover dry-lean mixes, general-

purpose ready-mixes, and even high strength pre-cast and pre-stressed concrete.

PORTLAND BLAST FURNACE SLAG CEMENT: Portland blast-furnace slag cementcontains up to 70 per cent of finely ground, granulated blast-furnace slag, a non-metallic

product consisting essentially of silicates and alumino-silicates of calcium. Slag brings with it

the advantage of the energy invested in the slag making. Grinding slag for cement

replacement takes only 25 per cent of the energy needed to manufacture Portland cement.

Using slag cement to replace a portion of Portland cement in a concrete mixture is a useful

method to make concrete better and more consistent. Portland blast-furnace slag cement

has a lighter colour, better concrete workability, easier finishability, higher compressive and

flexural strength, lower permeability, improved resistance to aggressive chemicals and more

consistent plastic and hardened consistency.

PORTLAND POZZOLANA CEMENT: Portland Pozzolana cement is ordinary Portland

cement blended with Pozzolanic materials (power-station fly ash, burnt clays, ash from

burnt plant material or silicious earths), either together or separately. Portland clinker is

ground with gypsum and Pozzolanic materials which, though they do not have cementing

properties in themselves, combine chemically with Portland cement in the presence of

water to form extra strong cementing material which resists wet cracking, thermal cracking

and has a high degree of cohesion and workability in concrete and mortar.
http://www.ultratechcement.com/products/index.htm#3http://www.ultratechcement.com/products/index.htm#4http://www.ultratechcement.com/products/index.htm#5http://www.ultratechcement.com/products/index.htm#5http://www.ultratechcement.com/products/index.htm#4http://www.ultratechcement.com/products/index.htm#3


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PROFIT AND LOSS ACCOUNT

(Rs. In crs)

PARTICULARS MARCH 11 MARCH 10 MARCH 09 MARCH 08

Income

Sales Turnover 14,858.60 7,729.13 7,160.42 6,286.24

Excise Duty 1,652.96 686.31 774.92 773.81

Net Sales 13,205.64 7,042.82 6,385.50 5,512.43

Other Incomes 286.67 122.71 75.35 98.67

Stock Adjustments 66.11 4.59 86.34 23.42

Total Income 13,558.42 7,170.12 6,547.19 5,634.52

Expenditure

Raw Materials 2,752.86 1,593.03 1,280.31 1,032.34

Power and Fuel Cost 3,122.59 1,430.91 1,712.98 1,253.26

Employee Cost 666.50 250.28 216.76 171.55

Other Manufacturing Expenses 600.04 97.42 92.58 61.52

Selling and Admin Expenses 0.00 1,653.57 1,405.51 1,267.57

Miscellaneous Expenses 3,587.40 48.58 28.88 35.48

Preoperative Expenses 0.00 -4.02 -8.38 -13.37

Total Expenses 10,729.39 5,069.77 4,728.64 3,808.35

Operating Profit 2,542.36 1,977.64 1,743.20 1,727.50

PBDIT 2,829.03 2,100.35 1,818.55 1,826.17

Interest 277.11 124.11 134.09 81.93

PBDT 2,551.92 1,976.24 1,684.46 1,744.24

Depreciation 765.73 388.08 323.00 237.23

Other Written Off 0.00 0.00 0.00 0.00

PBT 1,786.19 1,588.16 1,361.46 1,507.01

Extra-ordinary Items 125.52 0.00 0.00 0.00

PBT (Post Extra-ord. Items) 1,911.71 1,588.16 1,361.46 1,507.01

Tax 507.48 494.92 384.44 499.40

Reported Net Profit 1,404.23 1,093.24 977.02 1,007.61

Total Value Addition 7,976.53 3,476.74 3,448.33 2,776.01Preference Dividend 0.00 0.00 0.00 0.00

Equity Dividend 164.42 74.69 62.24 62.24

Corporate Dividend Tax 26.67 12.41 10.58 10.58

Per Share Data (Annualized)

Shares in issue (lakhs) 2,740.42 1,244.87 1,244.86 1,244.86

Earnings Per Share (Rs) 51.24 87.82 78.48 80.94

Equity Dividend (%) 60.00 60.00 50.00 50.00

Book Value (Rs) 389.04 370.05 289.22 216.59


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(Rs. In crs)


IncomeSales Turnover 5,484.35 3,785.29 3,132.07 2,704.86

Excise Duty 575.30 485.84 451.02 440.74

Net Sales 4,909.05 3,299.45 2,681.05 2,264.12

Other Income 61.41 24.59 -55.54 53.77

Stock Adjustments -30.76 39.12 20.90 -8.27

Total Income 4,939.70 3,363.16 2,646.41 2,309.62

Expenditure

Raw Materials 871.30 772.84 630.03 474.07

Power & Fuel Cost 1,138.32 910.11 783.13 630.59

Employee Cost 117.22 92.26 72.96 66.67

Other Manufacturing Expenses 56.22 48.19 56.27 105.75

Selling and Admin Expenses 1,241.44 935.24 746.60 578.43

Miscellaneous Expenses 30.15 18.32 41.74 57.38

Preoperative Expenses 0.00 0.00 0.00 0.00

Total Expenses 3,454.65 2,776.96 2,330.73 1,912.89

Operating Profit 1,423.64 561.61 371.22 342.96

PBDIT 1,485.05 586.20 315.68 396.73

Interest 92.61 96.99 128.05 138.85

PBDT 1,392.44 489.21 187.63 257.88Depreciation 226.25 216.03 221.78 198.90

Other Written Off 0.00 0.00 0.00 15.57

Profit Before Tax 1,786.19 273.18 -34.15 43.41

Extra-ordinary items 125.52 12.41 0.55 5.79

PBT (Post Extra-ord. Items) 1,911.71 285.59 -33.60 49.20

Tax 507.48 55.83 -36.45 10.37

Reported Net Profit 1,404.23 229.76 2.85 38.83

Total Value Addition 7,976.53 2,004.12 1,700.70 1,438.82

Preference Dividend 0.00 0.00 0.00 0.00

Equity Dividend 164.42 21.79 9.33 6.22

Corporate Dividend Tax 26.67 3.06 1.33 0.80

Per share data (Annualized)

Shares in issue (lakhs) 2,740.42 1,243.99 1,243.99 1,243.99

Earnings Per Share (Rs) 51.24 18.47 0.23 3.12

Equity Dividend (%) 60.00 17.50 7.50 5.00

Book Value (Rs) 389.04 83.46 85.78 86.41


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BALANCE SHEET

(Rs. In crs)


Sources of Funds

Total Share Capital 274.04 124.49 124.49 124.49

Equity Share Capital 274.04 124.49 124.49 124.49

Share Application Money 4.78 1.99 1.68 0.77

Preference Share Capital 0.00 0.00 0.00 0.00

Reserves 10,387.22 4,482.17 3,475.93 2,571.73

Revaluation Reserves 0.00 0.00 0.00 0.00

Networth 10,666.04 4,608.65 3,602.10 2,696.99

Secured Loans 2,789.76 854.19 1,175.80 982.66

Unsecured Loans 1,354.84 750.33 965.83 757.84

Total Debt 4,144.60 1,604.52 2,141.63 1,740.50

Total Liabilities 14,810.64 6,213.17 5,743.73 4,437.49

Application of Funds

Gross Block 17,942.27 8,078.14 7,401.02 4,972.60

Less: Accumulated Depreciation 6,542.02 3,136.46 2,765.33 2,472.14

Net Block 11,400.25 4,941.68 4,635.69 2,500.46

Capital Work in Progress 1,105.32 259.37 677.28 2,283.15

Investments 3,730.32 1,669.55 1,034.80 170.90

Inventories 1,956.52 821.70 691.97 609.76Sundry Debtors 602.29 215.83 186.18 216.61

Cash and Bank Balance 144.79 83.73 104.49 100.69

Total Current Assets 2,703.60 1,121.26 982.64 927.06

Loans and Advances 1,055.10 374.92 395.71 390.43

Fixed Deposits 0.00 0.00 0.00 0.00

Total CA, Loans & Advances 3,758.70 1,496.18 1,378.35 1,317.49

Deferred Credit 0.00 0.00 0.00 0.00

Current Liabilities 4,610.46 1,992.60 1,860.59 1,708.96

Provisions 573.49 161.01 121.80 125.55

Total CL & Provisions 5,183.95 2,153.61 1,982.39 1,834.51

Net Current Assets -1,425.25 -657.43 -604.04 -517.02

Miscellaneous Expenses 0.00 0.00 0.00 0.00

Total Assets 14,810.64 6,213.17 5,743.73 4,437.49

Contingent Liabilities 4,220.47 420.26 355.07 645.17

Book Value (Rs) 389.04 370.05 289.22 216.59


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(Rs. In crs)


Sources of Funds

Total Share Capital 124.49 124.40 124.40 124.40

Equity Share Capital 124.49 124.40 124.40 124.40

Share Application Money 0.00 0.09 0.00 0.51

Preference Share Capital 0.00 0.00 0.00 0.00

Reserves 1639.29 913.78 942.73 950.54

Revaluation Reserves 0.00 0.00 0.00 0.00

Networth 1763.78 1,038.27 1,067.13 1,075.45

Secured Loans 1151.25 1,221.93 1,253.35 1,245.01

Unsecured Loans 427.38 229.90 278.03 309.07

Total Debt 1578.63 1,451.83 1,531.38 1,554.08Total Liabilities 3342.41 2,490.10 2,598.51 2,629.53

Application of Funds

Gross Block 4784.70 4,605.38 4,304.29 4,176.46

Less: Accumulated Depreciation 2267.42 2,068.21 1,755.39 1,448.56

Net Block 2517.28 2,537.17 2,548.90 2,727.90

Capital Work in Progress 696.95 141.03 48.18 24.06

Investments 483.45 172.39 184.79 238.09

Inventories 433.58 379.57 283.71 223.17

Sundry Debtors 183.50 172.55 171.95 177.57

Cash and Bank Balance 89.59 61.50 56.26 41.83

Total Current Assets 706.67 613.62 511.92 442.57

Loans and Advances 265.46 168.23 338.86 302.64

Fixed Deposits 0.00 0.10 0.00 0.00

Total CA, Loans & Advances 972.13 781.95 850.78 745.21

Deferred Credit 0.00 0.00 0.00 0.00

Current Liabilities 1308.93 1,103.26 1,010.27 1,085.24

Provisions 18.47 39.18 23.87 36.01

Total CL & Provisions 1327.40 1,142.44 1,034.14 1,121.25

Net Current Assets -355.27 -360.49 -183.36 -376.04Miscellaneous Expenses 0.00 0.00 0.00 15.52

Total Assets 3342.41 2,490.10 2,598.51 2,629.53

Contingent Liabilities 1942.56 685.42 130.74 4,605.38

Book Value (Rs) 141.69 83.46 85.78 2,068.21


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CASH FLOW STATEMENT

It is a statement showing inflow cash and out flow of cash during the last year and as a resultthe balance of cash at the end of the year, is known as Cash Flow Statement. This statement

helps management to know the actual liquid position or position of cash on hand and also to

ascertain whether the business is able to get enough cash to meet the liabilities as and when

they arise.

The cash inflows and cash outflows are to be shown under three headings:

Cash Flows from operating Activities

Cash Flows from Investing Activities

Cash Flow from Financing Activities

(Rs. In crs)


Net Profit Before Tax 1786.19 1588.16 1361.46 1507.01

Net Cash From Operating

Activities

2074.26 1571.93 1457.57 1375.26

Net Cash (used in)/from

Investing Activities

-1648.91 -851.66 -1645.43 -1441.79


Financing Activities

-430.85 -741.03 191.66 77.63

Net (decrease)/increase In Cash

and Cash Equivalents

-5.50 -20.76 3.80 11.10

Opening Cash & Cash

Equivalents

150.29 104.49 100.69 89.59

Closing Cash & Cash Equivalents 144.79 83.73 104.49 100.69


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(Rs. In crs)


Net Profit Before Tax 1166.19 285.59 43.24 49.20

Net Cash From Operating

Activities

1113.09 551.63 337.42 381.35


Investing Activities

-1046.25 -357.24 -87.18 -163.04


Financing Activities

-38.84 -191.02 -235.81 -176.60

Net (decrease)/increase In Cash

and Cash Equivalents

27.99 3.37 14.43 41.80

Opening Cash & Cash

Equivalents

61.60 58.23 41.83 0.03

Closing Cash & Cash Equivalents 89.59 61.60 56.26 41.83


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RATIO ANALYSIS

Management should be interested in knowing financial strengths of the firm to make the

best use of it and to be able to spot out financial weaknesses of the firm to take suitable

corrective actions.

Financial analysis is the process of identifying the financial strengths and weaknesses of the

firm by properly establishing relationships between the items of the balance sheet and the

profit and loss account. Financial analysis can be undertaken by management of the firm or

by parties outside the firm like owners, creditors, investors and others.

Ratio Analysis is a powerful tool of financial analysis.

WHAT IS RATIO?

A ratio is defined as "the indicated quotient of two mathematical expressions" and as "the

relationship between two or more things". The relationship between two accounting

figures expressed mathematically is known as 'financial ratio'. Rations help to summaries

large quantities of financial data and to make qualitative judgment about the firm's financial

performance. It measures the firm's liquidity. The point to note is that a ratio reflecting a

quantitative relationship helps to form a qualitative judgment.

CLASSIFICATION OF RATIOS

The parties interested in financial analysis are short and long term creditors, owners and

management. Short term creditors main interest is I the liquidity position or short term

solvency of the firm. Long term creditors on the other hand are more interested in the long

term solvency and profitability of the firm. Similarly, owners concentrate on the firm's

profitability and financial condition. Management is interested in evaluating every aspect of

the firm's performance. They are classified into 4 categories:

Liquidity Ratios

Leverage Ratios

Activity Ratios

Profitability Ratios


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LIQUIDITY RATIOS

It is extremely essential for a firm to be able to meet its obligation as they become due.

Liquidity ratios measures the ability of the firm to meet its current obligations in fact,

analysis of liquidity needs the preparation of cash budgets and cash and fund flowstatements; but liquidity ratios, by establishing a relationship between cash and other

current assets to current obligations, provide a quick measure of liquidity.

LEVERAGE RATIOS

The second category of financial ratios is leverage or capital structure ratios. The long-term

creditors would judge the soundness of a firm on the basis of the long-term financial

strength measured in terms of its ability to pay the interest regularly as well as repay the

installment of the principal on due dates on in one lump sum at the time of maturity.

PROFITABILITY RATIOS

A company should earn profits to survive and grow over a long period of time. Profits are

essential but it would be wrong to assume that every action initiated by management of a

company should be aimed at maximizing profits, irrespective of social consequences. Profit

is the difference between revenues and expenses over a period of time. Profit is the

ultimate output of a company and it will have no future if it fails to make sufficient profits.

Generally, there are two types of profitability ratios:

1. Profitability in relation to sales.

2. Profitability in relation to investment.

ACTIVITY RATIOS

The turn over ratios measure the efficiency with which assets are being used in business.

These ratios show how fast the assets are being turned in to sales. The turnover ratio is a

test of relationship between sales and the various assets of the firm like stock, debtors,

current assets, fixed assets or total assets.


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CURRENT RATIO

This ratio establishes a relationship between current assets and current liabilities. The

current ratio is a measure of firm's short term solvency.

Current Ratio = Current Assets

Current Liabilities

YEAR 2011 2010 2009 2008 2007 2006 2005 2004

CURRENT RATIO 0.67 0.67 0.59 0.58 0.71 0.67 0.68 0.60

Interpretation: In a case of the year 2011, the current ratio was 0.67:1. It implies that for

every one rupee of current liabilities, current assets of 0.67 rupees are available to meet

them. The current ratio for the year 2009 and 2008 are 0.59:1 and 0.58:1 respectively. Ascompared to the ideal ratio (2:1), the liquidity position is no better because the company

has large amount of creditors. In short the company does not have enough working capital

to meet their day to day requirements.

QUICK RATIO

Quick ratio establishes a relationship between quick or liquid, assets and current liabilities. It

is also known as acid test ratio.

Quick Ratio = (Current AssetsInventory)

Current Liabilities

YEAR 2011 2010 2009 2008 2007 2006 2005 2004

QUICK RATIO 0.34 0.30 0.34 0.38 0.40 0.34 0.54 0.46

Interpretation: It believed that liquid assets should at least cover the liquid liabilities i.e. the

ratio should be 1:1. The quick ratio computed above for the year 2011 is 0.34:1, which is less

than half of the ideal ratio. This is because company has large amount of inventories. In

nutshell the company has less than the ideal quick ratio in last three years. The current ratio

has remained almost same over the years.


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DEBT EQUITY RATIO

The relationship between borrowed funds and owners capital is a popular measure of the

long term financial solvency of a firm. This relationship is shown by the debt-equity ratio.

Debt Equity Ratio = Total Debt

Net Worth

YEAR 2011 2010 2009 2008 2007 2006 2005 2004

DEBT EQUITY RATIO 0.39 0.35 0.59 0.65 0.90 1.40 1.44 1.45

Interpretation: The debt-equity ratio reflects the relative contribution of creditors and

owners of the firm. The ratio for the year 2011 is 0.39 that means the firm has total debt of

Rs.0.39 against each rupee of owners fund; it also suggests that the outside have less

amount of claim in the firm. The ratio for the year 2009 is 0.59 that mean the firm has total

debt of Rs.0.59 against each rupee of owners fund. And for the year 2005 the debt-equity

ratio is 1.44 which is higher than the previous six years. Because of high debt equity ratio,

the share holders of the company can get the benefit of trading on equity. But over the

years the ratio has reduced which means which is not in favor of the shareholder.

INTEREST COVERAGE RATIO

Interest coverage ratio is used to measure a company's earnings relative to the amount of

interest that it pays. The interest coverage ratio is considered to be a financial leverage ratio

in that it analyzes one aspect of a company's financial viability regarding its debt.

Interest coverage = EBIT (Operating Profit)

Interest

YEAR 2011 2010 2009 2008 2007 2006 2005 2004

INTEREST COVERAGE 7.53 14.97 12.75 20.85 14.45 4.11 1.60 1.41

Interpretation: The fixed interest coverage ratio computed above for the year 2011 is 7.53

times, which shows that the profit available before interest and taxes is 7.53 times the

interest payable. The ratio for the year 2008 is 20.85 times which is very high because of

decreased in the interest payment of the company.


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INVENTORY TURNOVER RATIO

Inventory turnover is a measure of the number of times inventory is sold or used in a time

period such as a year. Inventory turnover is the ratio of cost of goods sold to average

inventory.

Inventory turnover = Cost of Goods Sold

Av. Inventory

Av. Inventory = Opening Stock + Closing Stock

2

YEAR 2011 2010 2009 2008 2007 2006 2005 2004

INVENTORY TURNOVER 17.69 22.65 22.89 31.16 11.46 8.75 9.53 10.29

Interpretation: The ratio computed above for the year 2011 is 17.69 times, which shows

17.69 times the inventory is converted into sales during the year by the firm. The ratio for

the year 2008 is 32.16 times which was the highest during last few years and it was 8.75

times in the year 2008. It shows that companys inventory turnover ratio was continuously

increasing year by year, which shows high sales and ultimately shows companys ability to

earn profit. Here the company will be able to trade on a smaller margin of the gross profit.

The ratio is also higher in the year 2010 as the inventory of the company had increased.

DEBTORS TURNOVER

Debtors turnover ratio or accounts receivable turnover ratio indicates the velocity of debt

collection of a firm. In simple words it indicates the number of times average debtors

(receivable) are turned over during a year.

Debtors turnover = Net credit sales

Av. Debtors

YEAR 2011 2010 2009 2008 2007 2006 2005 2004

DEBTORS TURNOVER 32.28 35.04 31.71 27.55 27.58 19.16 15.34 12.75

Interpretation: The ratio computed for the year 2011 was 32.28 times, for the year 2009 the

ratio was 31.71 times and for the year 2005 it was 15.34. The ratio is constantly increasing

over the last years which show the efficiency of the credit management of the firm. The

average collection period for the year is approximately 11 days which shows the better

quality of debtors.


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INVESTMENT TURNOVER

Investment turnover is a measure of efficiency in the use of invested capital.

Investment turnover = Sales

Net worth + Long term liabilities

YEAR 2011 2010 2009 2008 2007 2006 2005 2004

INVESTMENT TURNOVER 17.69 22.65 22.89 31.16 34.61 21.20 11.04 12.12

Interpretation: The ratio for the year 2011 is 17.69 and it was 31.16 for the year 2008 and

11.04 in the year 2005. It was less till 2005 and then suddenly increased for consecutive two

years, but it again decreased. This means that the company had good return on investment.

FIXED ASSETS TURNOVER

Fixed assets turnover ratio is also known as sales to fixed assets ratio. This ratio measures

the efficiency and profit earning capacity of the concern. Higher the ratio, greater is theintensive utilization of fixed assets. Lower ratio means under-utilization of fixed assets.

Fixed assets turnover = Cost of sales

Net fixed assets

YEAR 2011 2010 2009 2008 2007 2006 2005 2004

FIXED ASSETS TURNOVER 0.74 0.87 0.86 1.11 1.67 1.25 1.01 0.83

Interpretation: The ratio computed above for the year 2008 was 1.11 times, for the year

2009 it was 0.87 times and in the year 2011 it is 0.74 times. This ratio was steady during last

2005 to 2008, but gradually it is falling. It shows that the fixed assets of the firm are notused effectively to earn profits.


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TOTAL ASSETS TURNOVER

The total asset turnover represents the amount of revenue generated by a company as a

result of its assets on hand. This equation is a basic formula for measuring how efficiently a

company is operating.

Total assets turnover = Sales

Total assets

YEAR 2011 2010 2009 2008 2007 2006 2005 2004

TOTAL ASSET TURNOVER 0.89 1.14 1.11 1.24 1.47 1.33 1.03 0.87

Interpretation: The ratio computed above for the year 2011 is 0.89 times, the ratio for the

year 2009 is 1.11 times and it is 0.87 times in the year 2004. It shows the firm is using its

total assets in good manner to generate profit by sales. The ratio in the year 2008 is 1.24

times which is higher as compared to the year 2009 and 2010 because of increased in the

fixed assets of the company. The total assets turnover ratio of the company more or less

remained the same during the last few years.

OPERATING PROFIT MARGIN

A ratio used to measure a companys pricing strategy and operating efficiency. Operating

margin is a measurement of what proportion of a companys revenue is left over after

paying for variable costs of production.

Operating margin = Operating profit

Net Sales

YEAR 2011 2010 2009 2008 2007 2006 2005 2004

OPERATING PROFIT

MARGIN

19.33 28.08 27.29 31.33 29.00 17.02 13.84 0.87

Interpretation: The operating profit ratio for the year 2011 is 19.33%, which shows that on

the sale of Rs.100 the company earns an operating profit of Rs.19.33. The ratio for the year

2008 is 31.33% and for the year 2004 it is 0.87%. It shows that gross profit of the company

in the year 2008 is quite good but it had decreased.


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GROSS PROFIT MARGIN

Gross margin is the difference between revenue and cost before accounting for certain

other costs. The gross margin tends to remain stable over time. Significant fluctuations can

be a potential sign of fraud or accounting irregularities.

Gross Profit Ratio = Gross profit

Net sales

YEAR 2011 2010 2009 2008 2007 2006 2005 2004

GROSS PROFIT MARGIN 13.53 22.56 22.24 27.03 28.07 14.90 10.58 11.37

Interpretation: The gross profit ratio computed above for the year 2011 is 13.53%, which

shows that on the sale of Rs.100 the company earns gross profit of Rs.13.53. The ratio forthe year 2007 is 28.07% and for the year 2004 it is 11.37%. It shows that gross profit of the

company in the year 2007 is quite good but it had decreased in 2009 and 2011 because of

increased in the raw material cost.

NET PROFIT MARGIN

Net profit divided by net revenues, often expressed as a percentage. This number is an

indication of how effective a company is at cost control. The higher the net profit margin is,the more effective the company is at converting revenue into actual profit. The net

profit margin is a good way of comparing companies in the same industry, since such

companies are generally subject to similar business conditions. However, the net profit

margins are also a good way to compare companies in different industries in order to gauge

which industries are relatively more profitable also called net margin.

Net Profit Ratio = Net profit

Net sales

YEAR 2011 2010 2009 2008 2007 2006 2005 2004

NET PROFIT MARGIN 10.43 15.30 15.06 17.99 15.75 6.91 0.10 1.69

Interpretation: The net profit ratio calculated above for the year 2011 is 10.43%, which

shows that on the sale of Rs.100 there is the net profit of Rs 10.43. For the year 2008 the

net profit ratio is 17.99% which is higher than the previous year. The net profit ratio

declined in the year 2011 because of increasing in the depreciation as the result of the full

year impact of capitalization of new project.
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RETURN ON CAPITAL EMPLOYED

The prime objective of making investments in any business is to obtain satisfactory return

on capital invested. Hence, the return on capital employed is used as a measure of success

of a business in realizing this objective. Return on capital employed establishes therelationship between the profit and the capital employed. It indicates the percentageof return on capital employed in the business and it can be used to show the overall

profitability and efficiency of the business.

ROCE = EBIT

Total assetscurrent liabilities

YEAR 2011 2010 2009 2008 2007 2006 2005 2004

ROCE 19.61 28.53 29.21 40.86 42.96 14.75 2.77 12.17

Interpretation: The ratio of return on capital employed was 2.77 in 2005 and 42.96 in 2007

which was the highest. This means that for every 100 rupees of capital employed, the

company earned a return of rupees 42.96. This shows that the company had maximum

return in the year 2007. Higher the ratio higher is the efficiency of the company.


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SHARE HOLDING PATTERN

PARTICULARS NO. OF

SHARES (Mn)

HOLDINGS

(%)

Total Promoter Holdings 173.61 63.4

Total Govt. Holding (Promoter + Non Promoter) 0.00 0.0

Total Domestic Institutions (Banks/ FI + MF / UTI) 17.49 6.4

Total Foreign Holdings (FII+NRI holdings) 52.12 19.0

Total Non Promoter Corporate Holdings 11.46 4.2

Total Public & Others (Individuals + HUF + Clearing members) 19.39 7.1

Total 274.06 100


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DIVIDEND DISTRIBUTION

YEAR END DIVIDEND PER SHARE DIVIDEND (%) REMARK

25-Aug-11 6.0 60.0 Final

21-Jun-10 6.0 60.0 Final

09-Jul-09 5.0 50.0 Final

09-Jul-08 5.0 50.0 Final

15-Mar-07 4.0 40.0 Final


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BIBLIOGRAPHY

WEBSITES:

http://www.ultratechcement.com/

http://www.adityabirla.com/our_companies/indian_companies/ultratech_cement.htm

http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/UltraTech-

Cement-Ltd/532538

http://economictimes.indiatimes.com/ultratech-cement-ltd/balancesheet/companyid-3027.cms

http://www.moneycontrol.com/india/stockpricequote/cementmajor/ultratechcement/UTC01
http://www.ultratechcement.com/http://www.adityabirla.com/our_companies/indian_companies/ultratech_cement.htmhttp://www.indiainfoline.com/Markets/Company/Background/Company-Profile/UltraTech-Cement-Ltd/532538http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/UltraTech-Cement-Ltd/532538http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/UltraTech-Cement-Ltd/532538http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/UltraTech-Cement-Ltd/532538http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/UltraTech-Cement-Ltd/532538http://economictimes.indiatimes.com/ultratech-cement-ltd/balancesheet/companyid-3027.cmshttp://www.moneycontrol.com/india/stockpricequote/cementmajor/ultratechcement/UTC01http://www.moneycontrol.com/india/stockpricequote/cementmajor/ultratechcement/UTC01http://economictimes.indiatimes.com/ultratech-cement-ltd/balancesheet/companyid-3027.cmshttp://www.indiainfoline.com/Markets/Company/Background/Company-Profile/UltraTech-Cement-Ltd/532538http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/UltraTech-Cement-Ltd/532538http://www.adityabirla.com/our_companies/indian_companies/ultratech_cement.htmhttp://www.ultratechcement.com/

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