BackUltratech may see Rs25,000 crore revenue in FY15: chairman
The firm reported revenue of Rs20,078 crore in fiscal 2014, and plans capital expenditure of Rs3,798 in 2014-15
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Mumbai: UltraTech Cement Ltd, India’s largest cement manufacturer, may see revenue touch ₹ 25,000 crore for the year ending 31 March 2015, chairman Kumar Mangalam Birla told shareholders at the company’s 14th annual general meeting on Wednesday.
For the 2014 fiscal, the company had reported revenue of ₹ 20,078 crore. Birla also outlined the company’s capital expenditure (capex) plan for the next three years at the meeting.
The company has earmarked ₹ 3,798 crore towards capex for the current fiscal. In 2016, UltraTech plans to spend ₹ 3,053 crore and in 2017 the company will spend ₹ 205 crore. In 2014, the company spent ₹ 2,300 crore.
The capex will be partly utilized towards the capacity expansion of Aditya Cements Works, the company’s plant in Chittorgarh, Rajasthan, to 2.9 million tonnes per annum. At present, the facility has a capacity of 1.5 million tonnes. Additionally, the firm will also use the capex for the expansion of its captive jetty located on the Saurashtra coast in Gujarat, Birla said.
“Even as the outlook continues to remain uncertain, over the long term demand growth should move up to double-digit levels," he said.
The growth drivers will be housing and infrastructure, he added.
UltraTech’s installed capacity is at 62 million tonnes per annum, including 3 million tonnes of overseas capacity. The company expects to scale the capacity to 70 million tonnes by early 2016, Birla said.
For the quarter ended 30 June, the company reported a 7% drop in profit because of higher costs.
Domestic sales volume improved by 14% over the corresponding period a year ago, Birla said. The variable cost was up by 3%, mainly on account of the increase in prices of petcoke and input material, he added.
On Wednesday, shares of Ultratech fell 2% to ₹ 2,543.85 on the BSE, while the exchange’s benchmark Sensex index fell 0.94% to 25,665.27 points.
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