Ulltratech Cement’s Dispatch Numbers For March 2012
DSIJ Intelligence / 04 Apr 2012
Ultratech Cement, one of the largest cement manufacturing companies in India, has announced its sales volume numbers for the month of March 2012 wherein the dispatches have grown by 6.5 per cent to 4.02 million tonnes while production has grown by 4.6 per cent to 3.92 million tonnes on a YoY basis.
Ultratech Cement, one of the largest cement manufacturing companies in India, has announced its sales volume numbers for the month of March 2012 wherein the dispatches have grown by 6.5 per cent to 4.02 million tonnes while production has grown by 4.6 per cent to 3.92 million tonnes on a YoY basis. For the fiscal year April-March 2012 the sales volume of the company moved up by 3.5 per cent to 39.75 million tonnes compared to the same period last year. The first half of the fiscal remained subdued, which was one of the reasons for the company to report lower volume growth. However, improved demand in the second half has helped it record a decent jump in their sales volume.
| Dispatch Numbers (Mn Tonnes) | |||
|---|---|---|---|
| Date | 2011 | 2012 | YoY |
| Jan | 3.34 | 3.72 | 11.4 |
| Feb | 3.32 | 3.52 | 5.9 |
| Mar | 3.77 | 4.02 | 6.5 |
| Jan-Mar | 10.43 | 11.25 | 7.9 |
Also, the eastern region comprising Bihar, Orissa and West Bengal has seen a good price hike by Rs 20-25 mainly on account of the supply constraint and improved demand during the quarter. However, the northern and the western regions have seen the highest jump in demand due to higher infrastructure and construction activity which led Ultratech to report higher sales volume during the quarter. Cement sales increased in Gujarat too on the back of increased government spending on infrastructure to complete various major projects. In other states the cement prices were hiked on an average by Rs 15-20 per 50 kg bag.
Looking at the sales volume numbers and the hike in the cement price we believe that Ultratech Cement will report strong topline and bottomline growth in the March 2012 quarter. The topline for the March quarter will grow at 14.8 per cent to Rs 5,585 crore on a QoQ basis. This will mainly be on account of a jump in sales realisation and higher dispatch.
| Sales and Realisation for March Quarter 2012 | |||
|---|---|---|---|
| Particulars | Dec Qtr 2011 | Mar Qtr 2012 | QoQ |
| Realisation | 4,660 | 4,965 | 6.5 |
| Sales Volume (Mn Tonne) | 10.44 | 11.25 | 7.8 |
| Total Sales (Rs Cr) | 4,865.0 | 5,585 | 14.8 |
Also, we see better margins for the cement companies this time as the improved demand has helped the cement companies to pass on the incremental costs to the consumers. The cut in duty on import of coal will help the company on the cost front but the recent hike by 20 per cent in the freight rate will eat into some of the benefits derived from the price hike.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.