MIRA INFORM REPORT
|
Report Date : |
07.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
AMBUJA
CEMENTS LIMITED (w. e. f. 05.04.2007) |
|
|
|
|
Formerly Known
As : |
GUJARAT
AMBUJA CEMENTS LIMITED |
|
|
|
|
Registered
Office : |
P.O. Ambuja Nagar, Taluka Kodinar, Amreli District,
Junagadh - 362715, Gujarat |
|
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|
Country : |
India |
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|
Financials (as
on) : |
31.12.2013 |
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|
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|
Date of
Incorporation : |
20.10.1981 |
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|
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Com. Reg. No.: |
04-004717 |
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Capital
Investment / Paid-up Capital : |
Rs.3091.700 Millions |
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|
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|
CIN No.: [Company
Identification No.] |
L26942GJ1981PLC004717 |
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|
Legal Form : |
A Public Limited Liability Company.
The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Marketing of Cement. |
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|
No. of Employees
: |
Information denied by management |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (74) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Status : |
Excellent |
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|
|
Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well-established company having excellent track record. Fundamentals of the company is decent. Financial position of the company
is strong and healthy. Directors are reported to be experienced and
respectable businessmen. Trade relations reported to be fair. Business is active. Payment terms
are reported to be regular and as per commitment. The company can be considered good for business dealing at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict
Implications: Apex court order may alter coal import dynamics. Traders go
slowly on talks over coal supply contracts, uncertainty over cancellation of
blocks weigh on stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn Business Empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M a M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest Euro
100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce
business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that it had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating = AAA |
|
Rating Explanation |
Highest degree of safety regarding timely
servicing of financial obligations |
|
Date |
09.10.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating = A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk |
|
Date |
09.10.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DENIED BY
|
Name : |
Mr. Mahesh Khandelwal |
|
Designation : |
Treasury Department |
|
Contact No.: |
91-22-40667002 |
|
Date : |
06.11.2014 |
LOCATIONS
|
Registered Office : |
P.O. Ambuja Nagar, Taluka Kodinar, Amreli District, Junagadh - 362715,
Gujarat, India |
|
Tel. No.: |
91-2795 - 237000 |
|
Fax No.: |
Not Available |
|
E-Mail : |
shares@ambujacement.com |
|
Website : |
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|
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|
Corporate Office : |
Elegant Business Park, MIDC Cross Road, ‘B’, Off. Andheri-Kurla Road,
Andheri (East), Mumbai – 400 059, Maharashtra, India |
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Integrated Cement Plants : |
Located At:
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Grinding Stations: |
Located At:
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Bulk Cement Terminals: |
Located At:
|
DIRECTORS
As on 31.12.2013
|
Name : |
Mr. Suresh Neotia |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. N S Sekhsaria |
|
Designation : |
Chairman |
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|
Name : |
Mr. Paul Hugentobler |
|
Designation : |
Vice Chairman |
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|
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|
Name : |
Mr. Bernard Fontana |
|
Designation : |
Director |
|
Date of
Appointment: |
10.02.2012 |
|
|
|
|
Name : |
Mr. Bernard Terver |
|
Designation : |
Director |
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|
Name : |
Mr. Nasser Munjee |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Rajendra P. Chitale |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Shailesh Haribhakti |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Omkar Goswami |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Haigreve Kjaitan |
|
Designation : |
Director |
|
Date of Appointment : |
27.07.2012 |
|
|
|
|
Name : |
Mr. B.L. Taparia |
|
Designation : |
01.09.2012 |
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|
|
|
Name : |
Mr. Onne Van Der Weijde |
|
Designation : |
Director
|
KEY EXECUTIVES
|
Name : |
Mr. Ajay Kapur |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. Sanjeev Churiwala |
|
Designation : |
Chief Financial Officer |
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|
|
|
Name : |
Mr. Rajiv Gandhi |
|
Designation : |
Company Secretary |
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|
|
|
Business Heads |
Mr. J.C. Toshniwal (North) Mr. Vilas Deshmukh (West and South) Mr. Vivek Agnihotri (East) |
SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of
Shareholder |
No. of
Shares |
Percentage
of Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
780308553 |
51.40 |
|
|
780308553 |
51.40 |
|
Total
shareholding of Promoter and Promoter Group (A) |
780308553 |
51.40 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
13726926 |
0.90 |
|
|
2449567 |
0.16 |
|
|
139571065 |
9.19 |
|
|
458678638 |
30.21 |
|
|
614426196 |
40.47 |
|
|
|
|
|
|
7162231 |
0.47 |
|
|
|
|
|
|
91165844 |
6.01 |
|
|
9408380 |
0.62 |
|
|
15625161 |
1.03 |
|
|
14213755 |
0.94 |
|
|
1332353 |
0.09 |
|
|
12870 |
0.00 |
|
|
66183 |
0.00 |
|
|
123361616 |
8.13 |
|
Total
Public shareholding (B) |
737787812 |
48.60 |
|
Total
(A)+(B) |
1518096365 |
100.00 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
30432871 |
0.00 |
|
|
30432871 |
0.00 |
|
Total
(A)+(B)+(C) |
1548529236 |
100.00 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Names of
Shareholder |
No. of
Shares |
Percentage
of Holding |
|
Holderind
Investments Limited |
629638433 |
40.66 |
|
Holcim
India Private Limited |
150670120 |
9.73 |
|
Total |
780308553 |
50.39 |
Shareholding of securities (including shares, warrants, convertible securities)
of persons (together with PAC) belonging to the category “Public” and holding
more than 5% of the total number of shares of the company
|
Names of
Shareholder |
No.
of Shares |
Percentage
of Holding |
|
Life
Insurance Corporation Of India |
96808788 |
6.25 |
|
Total |
96808788 |
6.25 |
Details of Depository Receipts (DRs)
|
Names of
Shareholder |
No.
of Outstanding |
Percentage
of Holding |
|
GDR |
30432871 |
1.97 |
|
Total |
30432871 |
1.97 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Cement. |
PRODUCTION STATUS (As on 31.03.2011)
(Rs.
in Millions)
|
Particulars |
Unit |
Installed
Capacity (b) |
Actual
Production |
|
|
|
|
|
|
Cement (excluding Trial Run production of Nil; previous year
7,422 MT) |
MT |
27350000 |
20968883 |
(a) The Company’s product is exempt from licensing requirements under New Industrial Policy in terms of Notification no. S.O.477 (E) dated 25th July 1991.
(b) Annual Capacity as certified by the management and, being a technical matter, accepted by the Auditors
GENERAL INFORMATION
|
No. of Employees : |
Information denied by management |
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Bankers : |
Not Available |
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||||||||||||
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Facilities : |
Note: * Secured by bank guarantee and is repayable on 27th
February 2020. |
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Banking
Relations : |
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|
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|
Auditors : |
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|
Name : |
S R Batliboi and Associates Chartered Accountants |
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|
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|
Cost Auditors : |
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|
Name : |
P. M. Nanabhoy and Company Chartered Accountants |
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|
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Ultimate Holding Company: |
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|
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Intermediate Holding Company : |
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Holding Company : |
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Subsidiary : |
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Joint Venture : |
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Step down subsidiary : |
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Fellow Subsidiary : |
|
CAPITAL STRUCTURE
After 10.04.2014
Authorised Capital : Rs.6500.000 Millions
Issued & Subscribed & Paid-up Capital : Rs.3097.058
Millions
As on 31.12.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2500000000 |
Equity Shares |
Rs.2/- each |
Rs.5000.000 Millions |
|
150000000 |
Preference Shares |
Rs.10/- each |
Rs.1500.000 Millions |
|
|
Total |
|
Rs.6500.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1546186806 |
Equity Shares |
Rs.2/- each |
Rs.3092.400
Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1545860286 |
Equity Shares |
Rs.2/- each |
Rs.3091.700
Millions |
a) Reconciliation of equity shares outstanding
|
Equity Shares |
Number
of Shares |
Rs. In Millions |
|
At the beginning of the year |
1542184436 |
3084.400 |
|
Add: Issued against Employee Stock Option Schemes (ESOS) . |
3675850 |
7.300 |
|
At the end of the year |
1545860286 |
3091.700 |
b) Rights, preferences and restrictions
attached to equity shares
The Company has one class of equity
shares having a par value of Rs.2 per share. Each shareholder is entitled to
one vote per equity share. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual General Meeting,
except in case of interim dividend. In the event of liquidation of the Company,
the equity shareholders are eligible to receive remaining assets of the
Company, after distribution of all preferential amounts, in proportion to their
shareholding.
c) Equity shares held by holding company,
ultimate holding company and their subsidiaries
|
Equity Shares |
Rs. In Millions |
|
i) Holderind Investments Limited, Mauritius (HIL), the holding company 629,638,433 equity shares of Rs.2 each fully paid-up. |
1259.300 |
|
ii) Holcim India Private Limited (HIPL) 150,670,120 equity shares of Rs.2 each fully paid-up |
301.300 |
d)
Details of equity shares held by shareholders
holding more than 5% shares:
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
Holderind Investments Limited, Mauritius |
629,638,433 |
40.73% |
|
Holcim India Private Limited |
150,670,120 |
9.75% |
|
Life Insurance Corporation of India |
92,665,449 |
5.99% |
As per the of the Company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represent both legal and beneficial ownership of shares.
Outstanding employee stock options exercisable into 6,381,625 equity shares of Rs.2 each fully paid up (Refer note 32 (b)).
Outstanding tradable warrants and right shares kept in abeyance exercisable into 186,690 and 139,830 equity shares of Rs.2 each fully paid-up respectively.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
3091.700 |
3084.400 |
3068.700 |
|
(b) Reserves & Surplus |
91763.700 |
84966.200 |
77625.600 |
|
(c) Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.100 |
|
Total
Shareholders’ Funds (1) + (2) |
94855.400 |
88050.600 |
80694.400 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
291.500 |
346.300 |
428.000 |
|
(b) Deferred tax liabilities
(Net) |
5643.200 |
5482.500 |
6436.000 |
|
(c) Other long term
liabilities |
175.800 |
49.100 |
38.200 |
|
(d) long-term provisions |
248.000 |
208.900 |
179.100 |
|
Total
Non-current Liabilities (3) |
6358.500 |
6086.800 |
7081.300 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
9745.200 |
9345.400 |
9511.600 |
|
(c) Other current liabilities |
7923.900 |
6558.700 |
6397.700 |
|
(d) Short-term provisions |
10762.900 |
13089.300 |
11733.400 |
|
Total
Current Liabilities (4) |
28432.000 |
28993.400 |
27642.700 |
|
|
|
|
|
|
TOTAL |
129645.900 |
123130.800 |
115418.400 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
60621.600 |
58619.300 |
61846.100 |
|
(ii) Intangible Assets |
3.700 |
4.400 |
18.500 |
|
(iii) Capital work-in-progress |
6948.800 |
5201.200 |
4868.200 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1045.100 |
1120.100 |
953.700 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
3205.500 |
2872.700 |
5067.600 |
|
(e) Other Non-current assets |
2450.800 |
2549.100 |
21.500 |
|
Total
Non-Current Assets |
74275.500 |
70366.800 |
72775.600 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
16839.400 |
15438.300 |
7689.400 |
|
(b) Inventories |
9339.400 |
9839.300 |
9249.700 |
|
(c) Trade receivables |
2315.100 |
2133.700 |
2408.500 |
|
(d) Cash and cash equivalents |
23410.900 |
22537.200 |
20690.800 |
|
(e) Short-term loans and
advances |
2894.100 |
2489.800 |
2365.100 |
|
(f) Other current assets |
571.500 |
325.700 |
239.300 |
|
Total
Current Assets |
55370.400 |
52764.000 |
42642.800 |
|
|
|
|
|
|
TOTAL |
129645.900 |
123130.800 |
115418.400 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
91603.500 |
97303.000 |
85542.600 |
|
|
|
Other Income |
3936.200 |
3488.700 |
2478.700 |
|
|
|
TOTAL (A) |
95539.700 |
100791.700 |
88021.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw materials consumed |
6461.700 |
6717.600 |
5773.800 |
|
|
|
Purchases of Stock-in-Trade |
7.100 |
0.000 |
0.000 |
|
|
|
Changes in inventories of finished goods and work-in-progress |
1183.300 |
(2008.300) |
570.000 |
|
|
|
Employee benefits expense |
5024.100 |
4785.100 |
4332.00 |
|
|
|
Power and fuel |
20629.200 |
23290.700 |
20013.700 |
|
|
|
Freight and forwarding |
23617.700 |
22758.500 |
19333.600 |
|
|
|
Other expenses |
18241.400 |
17096.800 |
15816.600 |
|
|
|
Self-consumption of cement |
(69.300) |
(67.100) |
(67.400) |
|
|
|
Exceptional items |
(248.200) |
2791.300 |
242.500 |
|
|
|
TOTAL (B) |
74847.000 |
75364.600 |
66014.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
20692.700 |
25427.100 |
22006.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
650.800 |
756.600 |
526.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
20041.900 |
24670.500 |
21480.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
4900.700 |
5652.200 |
4451.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
15141.200 |
19018.300 |
17028.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2195.500 |
6047.700 |
4740.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
12945.700 |
12970.600 |
12288.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
7370.100 |
2847.500 |
3253.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
1500.000 |
2000.000 |
7000.000 |
|
|
|
Distribution Tax written back |
0.000 |
0.000 |
(8.300) |
|
|
|
Interim Dividend On Equity Shares |
5563.400 |
5548.000 |
4906.900 |
|
|
|
Dividend Distribution Tax on above |
945.500 |
900.000 |
796.000 |
|
|
BALANCE CARRIED
TO THE B/S |
12306.900 |
7370.100 |
2847.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
542.800 |
232.700 |
765.700 |
|
|
|
Royalty |
4.800 |
1.900 |
2.800 |
|
|
|
Interest |
0.100 |
0.000 |
0.000 |
|
|
|
Other Earnings |
37.700 |
94.800 |
33.300 |
|
|
TOTAL EARNINGS |
585.400 |
329.400 |
801.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials |
231.900 |
389.800 |
371.900 |
|
|
|
Packing material |
0.000 |
26.000 |
15.500 |
|
|
|
Fuels |
3409.400 |
4859.600 |
4904.700 |
|
|
|
Spares |
381.600 |
497.900 |
571.300 |
|
|
|
Capital goods |
1112.900 |
373.100 |
573.100 |
|
|
TOTAL IMPORTS |
5135.800 |
6146.400 |
6436.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
8.39 |
8.43 |
8.02 |
|
|
|
Diluted |
8.37 |
8.41 |
8.00 |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
Net Profit Margin (PAT/Sales) |
(%) |
14.13 |
13.33 |
14.37 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
22.59 |
26.13 |
25.73 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.45 |
16.28 |
15.54 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16 |
0.22 |
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.00 |
0.01 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.95 |
1.82 |
1.54 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
3068.700 |
3084.400 |
3091.700 |
|
Reserves & Surplus |
77625.600 |
84966.200 |
91763.700 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.100 |
0.000 |
0.000 |
|
Net
worth |
80694.400 |
88050.600 |
94855.400 |
|
|
|
|
|
|
Long Term borrowings |
428.000 |
346.300 |
291.500 |
|
Short Term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
428.000 |
346.300 |
291.500 |
|
Debt/Equity
ratio |
0.005 |
0.004 |
0.003 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
85,542.600 |
97,303.000 |
91,603.500 |
|
|
|
13.748 |
(5.857) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
85,542.600 |
97,303.000 |
91,603.500 |
|
Profit |
12,288.600 |
12,970.600 |
12,945.700 |
|
|
14.37% |
13.33% |
14.13% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
Rs.
In Millions
|
PARTICULARS |
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
Current maturities of long term debt |
113.300 |
81.800 |
65.600 |
|
Total |
113.300 |
81.800 |
65.600 |
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
|
HIGH
COURT OF GUJARAT SPECIAL
CIVIL APPLICATION No. 2596 of 2010
Last Listing Date: 30/11/2012
Office Details
Applications
Court Proceedings
Available Orders
|
UNSECURED LOAN:
|
Particulars |
31.12.2013 Rs.
In Millions |
31.12.2012 Rs.
In Millions |
|
LONG TERM
BORROWINGS |
|
|
|
Sales tax deferment loan** |
232.900 |
346.300 |
|
Total |
232.900 |
346.300 |
Note:
** Sales tax deferment
loan is interest free and payable in 10 annual installments starting from April
2007 to April 2016 of varying amounts from Rs. 15.200 millions to Rs.132.300
millions.
FINANCIAL RESULTS
2013
AT A GLANCE (STAND
ALONE RESULTS)
Cement production decreased by 3% to reach 20.96 million tonnes, from 21.620 million tonnes while clinker production decreased to 14.270 million tonnes, 10% down from 15.81 million tonnes in year 2012.
Domestic cement sales volume continued with sluggish demand by recording a decrease of 2% at 20.940 million tonnes from 21.310 million tonnes in year 2012. Cement exports decreased to 0.100 million tonnes from 0.120 million tonnes in year 2012. Clinker sales (including exports) were up at 0.560 million tonnes from 0.550 million tonnes in 2012.
Net sales at Rs.9,087.000 millions were 6% lower than that of previous year’s Rs.9,675.000 millions. Average sales realisation decreased by around 4% at Rs.4,208 per tonne against approx Rs. 4,400 per tonne in 2012.
Total (operating) expenses for the year 2013 increased by 2% over that of year 2012.
The Company achieved an absolute EBITDA of Rs.1651.000 millions in year 2013. This is lower by 33% over the corresponding Rs.2473.000 millions of the year 2012.
Profit before tax at Rs.1,514.000 millions was down by 20% over corresponding figure of Rs.1902.000 millions for year 2012.
Net Profit at Rs.1,295.000 millions was down by 0.2% over corresponding figure of Rs.1297.000 millions for the year 2012.
MARKET DEVELOPMENTS
The Company’s domestic cement sales in 2013 declined by 1.7% to 20.940 million tonnes as compared to 21.31 million tonnes achieved in 2012. Total cement sales (including exports) declined by 1.8% to 21.040 million tonnes as compared to 21.430 million tonnes achieved in 2012.
REGION-WISE SALES
VOLUME / GROWTH
In the North region, domestic cement sales of the Company declined by 1.7% to 8.640 million tonnes in 2013 compared to 8.790 million tonnes in 2012.
In the East region, the Company achieved sales of 4.210 million tonnes of cement in the domestic market, registering a decline of 0.2% over the previous year sales of 4.220 million tonnes.
In the West and South region, the Company’s domestic cement sales in 2013 declined by 2.5% to 8.090 million tonnes as compared to 8.300 million tonnes achieved in 2012.
Cement exports in 2013 reduced further to 0.100 million tonnes as compared to 0.120 million tonnes in 2012.
COST DEVELOPMENTS
During the year 2013, the economy witnessed upward movement in overall cost structure and volatile foreign exchange rates. However, the Company implemented cost optimisation initiatives which helped in containing inflationary impact to some extent.
MAJOR COST MOVEMENTS
Cost of major raw material, fly ash, increased by 7% on per tonne basis. However, strategy to change in mix of gypsum resulted in cost decrease by 2% on per tonne basis. Overall, the absolute raw material cost decreased by approx. 6% over the previous year including the impact of lower volumes.
Power and fuel costs account for approximately 26% of the total operating cost of the Company. Coal cost for kiln and captive power plants reduced by 8% and 10% respectively, due to reduced usage of imported coal and also substitution of high cost coal by pet coke usage. Besides, there was increased usage of Alternate fuels by 3% over the usage for the year 2012.
Cost of grid power continued its upward movement with per kwh rate increasing by approximately 22% over the previous year. In 2013, captive power generation which supports 66% of the total power requirements of the Company, reduced by 10%.
Overall, the reduction in dependence on grid, increase usage of captive power and reduction in fuel prices have helped the Company in registering a decrease of 11% in absolute cost of power and fuel as compared to the year 2012.
Freight and forwarding cost works out to 30% of total operating costs. During the year, the same hardened by 6% on per tonne basis over the year 2012 due to an increase in diesel prices.
The cost of packing bags went up by around 14%, driven by increase in PP granule prices.
EXPANSION PROJECTS
AND NEW INVESTMENTS
The Company took up several projects to serve its customers in a more efficient, cost-effective, reliableand environment-friendly manner, while bolstering its market position in the industry.
CAPACITY EXPANSION
DURING THE YEAR
The new Bulk Cement Terminal (BCT) at Mangalore commissioned this year will help the Company expand its footprint in the southern markets of India.
EFFICIENCY
IMPROVEMENT MEASURES
GETTING BETTER AT
BEING THE BEST
The Company focused on consolidation and optimisation of its existing capacities in all the three regions. Capital investments kept flowing in during the year, to ensure the highest standards of safety in order to meet the Company policies of ‘Zero Harm’, clean and energy efficient infrastructure, cost efficient and environment friendly material handling systems and process optimisation.
OUTLOOK
REFORMS FOR AN
ECONOMIC REVIVAL
THE ECONOMIC OUTLOOK
Economic growth accelerated to 4.8% in the second fiscal quarter from 4.4% in the first due to higher output in both industry and agriculture and a rebound in exports. However, it is less likely that they will see a complete turnaround in the economy as the domestic demand remains weak and both consumption and investment continue to grow sluggishly. They expect growth to remain soft in the first quarter of year 2014 owing to delayed investment announcements in the run-up to general elections. Further, it is expected to be supported by export recovery and likely sustained growth in capital expenditure after the second quarter of FY2014, once political stability has been re-established.
They expect the Indian economy to grow at 5% during year 2014 and driven by India’s strong economic fundamentals - high saving and investment rates, rapid workforce growth, a quickly expanding middle class, and the start of a shift from low-productivity agriculture to high productivity manufacturing. However, given the country’s large external financing needs, domestic expansion will be affected by the global availability of capital.
Economic growth could exceed their forecasts if the Administration’s reform efforts are sustained, infrastructural development accelerates and the government enjoys success in its bid to develop a labour-intensive manufacturing sector in India.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH SEPTEMBER 2014
(Rs. In Millions)
|
|
Particulars |
Quarter
Ended |
Year
to date figure for current period ended |
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
||
|
1 |
Income from operations |
|
|
|
|
|
(a) Net sales/income from operations (net of excise duty) |
21875.500 |
27063.500 |
75317.300 |
|
|
(b) Other operating income |
145.100 |
137.100 |
415.800 |
|
|
Total income from operations (net) |
22020.600 |
27200.600 |
75733.100 |
|
2 |
Expenses |
|
|
|
|
|
a) Cost of materials consumed |
1767.100 |
2204.300 |
6054.300 |
|
|
b) Purchases of stock-in-trade |
191.300 |
58.800 |
257.800 |
|
|
c) Changes in inventories of finished goods, work-in-
process and stock-in-trade |
-471.000 |
(520.100) |
(456.400) |
|
|
d) Employee benefits expense |
1424.100 |
1407.200 |
4121.800 |
|
|
e) Depreciation and amortisation expense |
1301.500 |
1241.500 |
3740.400 |
|
|
f) Power and Fuel |
5097.900 |
6241.800 |
17122.900 |
|
|
g) Freight and distributors expenses |
|
|
|
|
|
-
On finished products |
4033.500 |
5164.100 |
14259.500 |
|
|
-
On internal material transfer |
1449.500 |
1737.800 |
4517.100 |
|
|
|
5483.000 |
6901.900 |
18776.600 |
|
|
h) Other expenses |
4594.100 |
5028.900 |
4594.100 |
|
|
Total expenses |
19388.000 |
22564.300 |
63771.400 |
|
3 |
Profit from operations before other income, finance costs
and exceptional items (1-2) |
2632.600 |
4636.300 |
11961.700 |
|
4 |
Other income |
|
|
|
|
|
Interest income |
578.500 |
587.700 |
1762.700 |
|
|
Other |
306.600 |
793.100 |
1803.400 |
|
|
Total other income |
885.100 |
1380.800 |
3566.100 |
|
5 |
Profit before finance costs and exceptional items (3+4) |
3517.700 |
6017.100 |
15527.800 |
|
6 |
Finance costs |
178.600 |
202.500 |
542.100 |
|
7 |
Profit after finance costs but before exceptional items
(5-6) |
3339.100 |
5814.600 |
14985.700 |
|
8 |
Exceptional items |
0.000 |
0.000 |
0.000 |
|
9 |
Profit before tax (7+8) |
3339.100 |
5814.600 |
14985.700 |
|
10 |
Tax expense |
948.500 |
1727.600 |
3308.000 |
|
11 |
Net Profit after tax (9-10) |
2390.600 |
4087.000 |
11677.700 |
|
14 |
Paid-up equity share capital (Face value-2/- per equity
share) |
3097.100 |
3094.500 |
3091.700 |
|
16 |
Reserves (excluding revaluation reserves) as per Balance
Sheet of previous accounting year |
|
|
|
|
18 |
Earnings per share (of 71 each) (for the period - not
annualised) |
|
|
|
|
|
Basic |
1.54 |
2.64 |
7.55 |
|
|
Diluted |
1.54 |
2.64 |
7.54 |
|
|
|
|
|
|
|
A |
Particulars of Shareholding |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
- Number of shares |
737787812 |
739785708 |
737787812 |
|
|
- Percentage of shareholding |
47.64% |
47.82 |
47.64% |
|
2 |
Promoters and Promoter group Shareholding a)
Pledged/encumbered |
|
|
|
|
|
-Number of shares |
-- |
-- |
-- |
|
|
-Percentage of shares (as a % of the total shareholding of
promoter and promoter group) |
-- |
-- |
-- |
|
|
-Percentage of shares (as a % of the total share capital
of the Company) |
-- |
-- |
-- |
|
|
b) Non-encumbered |
|
|
|
|
|
-Number of shares |
780308553 |
780308553 |
780308553 |
|
|
-Percentage of shares (as a % of the total shareholding of
promoter and promoter group) |
100 |
100 |
100 |
|
Percentage of shares (as a % of the total share capital of |
50.39 |
50.43 |
50.39 |
|
Notes:
- The above results have been approved and taken on record by the Board of Directors at its meeting held on 30th October, 2014.
a) Other income includes Rs.269.700 Millions for the nine months ended 30th September, 2014, Rs.278.400 Millions for the nine months ended 30th September, 2013 and Rs.321.900 Millions for the year ended 31st December, 2013 written back towards interest on income tax relating to earlier years
b) Tax expense is net of credit relating to earlier years, Rs.947.500 Millions for the nine months ended 30th September, 2014, Rs.233.200 Millions for the quarter ended 30th September, 2013, Rs.1404.900 Millions for the nine months ended 30th September, 2013 and Rs.2407.500 Millions for the year ended 31st December, 2013.
- The Competition Commission of India in June 2012 had imposed a penalty of Rs.11639.100 Millions concerning alleged contravention of the provisions of the Competition Act, 2002. On Company’s appeal, Competition Appellate Tribunal had stayed the penalty with a condition to deposit 10% of the penalty amount, which was deposited. Based on the advice of external legal counsel, the Company believes that it has good grounds for a successful appeal. Accordingly, no provision is considered necessary in the above financial results.
- During the quarter, the Company has commissioned a roller press of 0.80 million tons at its Rabriyawas plant situated in the state of Rajasthan.
- The Hon’ble Supreme Court vide its Order dated 24th September, 2014 has cancelled number of coal blocks allotted to various companies, including a coal block at Dahegoan, in the State of Maharashtra, allotted to the Company jointly with other parties, the activities in respect of which has not yet commenced. Cancellation of the aforesaid coal block does not have any material impact on above financial results.
- Earnings per share on profit before exceptional item (net of taxes) are as under :
|
Particulars |
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
Earnings per share (of 71 each) (for the period - not
annualised) |
|
|
|
|
Basic |
1.54 |
2.64 |
7.55 |
|
Diluted |
1.54 |
2.64 |
7.54 |
- The Company has only one business segment “Cementitious Materials”.
- The figures for the previous periods have been regrouped wherever necessary to conform to the current period’s presentation.
- Limited review of the financial results for the quarter ended 30th September, 2014 has been carried out by the statutory auditors
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
90209304 |
16/06/2003 |
10,000,000.00 |
Standard Chartered Bank |
19; N. S. Road, Calcutta, West Bengal - 700001, India |
- |
|
2 |
90205358 |
02/06/1998 |
150,000,000.00 |
Uti Bank Ltd. |
7/1; Lord Sinha Road, Calcutta, West Bengal - 700071, India |
- |
|
3 |
90202636 |
22/04/1993 * |
105,000,000.00 |
Industrial Development Bank Of India |
IDBI Tower; Cuffe Parade, Colaba, Bombay, Maharashtra - 400005, India |
- |
|
4 |
90202597 |
22/04/1993 * |
34,076,000.00 |
The Industrial Credit & Investment Corpn. Of India |
163; Backbay Reclamation, Bombay, Maharashtra - 400021, India |
- |
|
5 |
90201517 |
20/03/1989 |
7,000,000.00 |
Housing Development Finance Corpn. Ltd. |
Ramon House, 169; Backbay Reclamation, Bombay, Maharashtra - 400020, India |
- |
|
6 |
90202515 |
20/03/1989 * |
633,000.00 |
Life Insurance Corpn. Of India |
Yogakshema, Jeevan
Bima Marg, Bombay, Maharashtra |
- |
|
7 |
90206997 |
29/03/1990 * |
854,000.00 |
ICICI Limited |
163; Backbay Reclamation, Bombay, Maharashtra - 400020, India |
- |
|
8 |
90202433 |
22/04/1993 * |
2,000,000.00 |
NEW BANK OF INDIA |
Chandni Chowk, Delhi, Delhi - 110006, India |
- |
|
9 |
90202420 |
22/04/1993 * |
4,000,000.00 |
State Bank Of Mysore |
Antrikash Bhawan,
Kasturba Gandhi Marg, |
- |
|
10 |
90202381 |
20/03/1989 * |
40,000,000.00 |
Industrial Development Bank Of India |
Nariman Bhavan; 227; Vinay K. Shah Marg, Nariman Point, Bombay, Maharashtra - 400021, India |
- |
|
11 |
90206807 |
29/03/1990 * |
23,100,000.00 |
ICICI Limited |
163; Backbay Reclamation, Bombay, Maharashtra - 400020, India |
- |
|
12 |
90202364 |
07/12/1987 * |
37,000,000.00 |
International Finance Corpn. |
1818; H Street, New York, , United States Of America |
- |
|
13 |
90202358 |
01/10/1987 * |
12,100,000.00 |
General Insurance Corpn. Of India |
Industrial Assurance Building, Churchgate, Bombay, Maharashtra - 400020, India |
- |
|
14 |
90206745 |
29/03/1990 * |
6,000,000.00 |
New Bank Of India |
Chandni Chowk, Delhi, Delhi - 110006, India |
- |
|
15 |
90202316 |
21/06/1988 * |
224,200,000.00 |
Industrial Development Bank Of India |
IDBI Tower; Cuffe Parade, Colaba, Bombay, Maharashtra - 400005, India |
- |
|
16 |
90206726 |
29/03/1990 * |
84,800,000.00 |
Industrial Development Bank Of India |
IDBI Tower; Cuffe Parade, Colaba, Bombay, Maharashtra - 400005, India |
- |
|
18 |
90202294 |
28/11/1985 |
11,000,000.00 |
The Industrial Credit & Investment Corpn. Of India |
163; Backbay Reclamation, Bombay, Maharashtra - 400021, India |
- |
|
19 |
90206684 |
29/03/1990 * |
10,000,000.00 |
Unit Trust Of India |
13; Sir Vilhaldas Thackersay Marg, New Marine lines; P. B. No. 11410, Bombay, Maharashtra - 400020, India |
- |
|
20 |
90202283 |
21/06/1988 * |
70,000,000.00 |
Life Insurance Corpn. Of India |
Yogakshema, Jeevan
Bima Marg, Bombay, Maharashtra |
- |
|
21 |
90206682 |
29/03/1990 * |
70,000,000.00 |
Life Insurance Corpn. Of India |
Yogakshema, Jeevan
Bima Marg, Bombay, Maharashtra |
- |
|
22 |
90206675 |
29/03/1990 * |
37,000,000.00 |
International Finance Corpn. |
1818; H Street, New York, , United States Of America |
- |
|
23 |
80007406 |
29/03/1990 * |
196,500,000.00 |
Punjab National Bank |
5, Parliament Street, New Delhi, Delhi - 110001, India |
- |
|
24 |
90202259 |
23/09/1985 * |
80,000,000.00 |
The Industrial Credit And Investmetn Corp. Of India Limited |
163; Backbay Reclamation, Bombay, Maharashtra, India |
- |
|
25 |
90206634 |
29/03/1990 * |
6,000,000.00 |
General Insurance Corpn. Of India |
Industrial Assurance Building, Churchgate, Bombay, Maharashtra - 400020, India |
- |
|
26 |
90202210 |
21/06/1988 * |
140,000,000.00 |
industrial development bank of india |
Nariman Bhavan; 227; Vinay K.Shah Marg, Nariman Point, Bombay, Maharashtra - 400021, India |
- |
|
27 |
90206613 |
29/03/1990 * |
80,000,000.00 |
Industrial Finance Corpn. Of India |
Bank Of Baroda Building, 16; Sansad Marg, New Delhi, Delhi - 110001, India |
- |
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Computer
·
Vehicles
·
Furniture and Fixture
PRESS
RELEASE:
AMBUJA-HOLCIM
DEAL: MERGER WOULD'VE BEEN BETTER, SAYS IIAS
Despite a strong "no" from Indian
proxy advisory firms, IIAS, SES and InGovern, Ambuja
shareholders voted in favour of the company’s restructuring plans that consumes
most of the companies cash in buying parent Holcim's stake in ACC.
Even though domestic institutional investors
such as LIC who are reportedly against the restructuring the proposals received
68 percent approval from minority shareholders, that is non-promoter
shareholders. Word on the street is that FIIs voted in favour of the deal
heeding the advice of foreign proxy firms ISS and Glass Lewis.
When the deal received negative press in
India, the Ambuja managing director had said that Indian investors are
emotional about cash.
However, Anil Singhvi, Founder, IIAS feels
there is nothing wrong in being “emotional” with your investments. "When
you look at the shareholding of Ambuja, 51 percent is held by Holcim, 31
percent is held by foreign institutional investors (FIIs) and about 11 percent
is held by DIIs or domestic institutions and just about 8 percent is held by
the retail investors,” he told CNBC-TV18 in an interview.
He says it was a very high voting percentage.
“If you look at the institutional shareholders including the DIIs it was 87
percent who voted. So, I am very encouraged by the fact that this being the
first transaction of majority of minority and you have 87 percent people
voting, which is very favourable and very encouraging aspect,” he says.
Moreover, he feels ISS somewhere have erred.
“I have seen their report. They have flawed in their whole analysis of this
transaction and most FIIs have gone by ISS recommendation. This is the thing
which we have been working on that how do we make FIIs those who participate in
Indian markets to look at the Indian report rather than ISS. ISS really doesn’t
have any presence in Indian market,” he says.
He feels there should have been a complete
full blown merger of Ambuja and ACC. “There would not have been any cash and
that is how the synergies would have been captured,” he says.
However, investment advisor SP Tulsian is not
all that negative. “You can always advocate for the merger. The same argument
could have been done incase of Grasim and Ultratech also; what is the logic of
existence of Grasim as a holding company? That is a subjective analysis. I
agree that there are various options available. You can go for merger also; I
am not disputing that. May be five years down the line the same thing can
happen with ACC-Ambuja, same thing can happen with Grasim and Ultratech,” he
told the CNBC-TV18.
AMBUJA
CEMENTS, ACC NOT READY FOR VOLUME GROWTH TAKE OFF
Holcim Limited’s cement companies ACC Limited and Ambuja Cements Limited shares
may underperform large cap peers such as UltraTech Cement Limited on the back
of muted volume growth because of a lack of capacities, although economic
recovery is gathering steam and construction activity is expected to rebound.
Nirmal Bang Research, in a note dated 31
October, slashed the volume growth forecast for 2015 by 195 basis points (bps)
to 8.7% for ACC and by 35 bps to 9.4% for Ambuja Cements. One basis point is
one-hundredth of a percentage point. The volume growth visibility is weak for
ACC and Ambuja Cements, compared with UltraTech which is expected to clock
double digit volume growth, said analysts.
Ads by BlockAndSurfAd Options ACC and Ambuja
Cements have not added any capacity in the past few years after getting
acquired by Swiss cement maker Holcim. ACC’s capacity utilization was around
75% in the September quarter, with plants in some regions running at full
capacity. ACC and Ambuja will commission capacity of 4 million tonnes (mt) and
6 mt each by the end of next year only, said Sanjeev Kumar Singh, an analyst
from Emkay Global Financial Services Limited.
In the September quarter, volume growth was
flat at around 1.6% for ACC due to the lack of capacity. For Ambuja Cements as well,
volume declined 1% because of demand pressure in the western region, Singh
said. Realizations per tonne increased by 8% for ACC and by 10% for Ambuja
Cements which buoyed their operating performance. A low base helped as this
time last year cement prices were depressed. As a result, Ebitda (earnings
before interest, taxes, depreciation and amortization) per tonne for ACC and
Ambuja Cements rose by around 34% and 51%, respectively, in the September
quarter.
Cost pressures continued as power, fuel and
freight costs increased by around 12% each for both the companies. Increase in
e-auction for coal, which was costlier, also weighed on energy costs. But
rising costs did not have much impact on margins due to sharp price increases
taken during the quarter. Operating margin expanded by 216 bps to 11.2% for ACC
and by 468 bps to 17.3% for Ambuja Cements.
It was not surprising that net profit for ACC
rose 62% to Rs.193 crore and for Ambuja Cements it was up 44% to Rs.239 crore.
ACC and Ambuja Cements shares are up 32% and
21%, respectively, in the past one year, underperforming other cement makers
because of the overhang of large cash outgo from Ambuja Cements’ balance sheet
for acquiring ACC.
ACC, AMBUJA CEMENTS: COSTS NEGATE
BENEFITS OF HIGHER CEMENT PRICES
Holcim
Limited’s cement companies ACC Limited and Ambuja Cements Limited posted a
similar trend in the June quarter. Although both firms sold more cement at
higher prices, costs, too, moved up compared with the year-ago period. That
affected operating profitability, which came in below expectations.
Within
these parameters, surprisingly, Ambuja Cements painted a better picture both in
revenue and profit growth. Net revenue growth at 15.4% year-on-year outstripped
that of ACC, which clocked a lower 7.6% growth. Given that nearly a fourth of
ACC’s revenue comes from the south, which posted the most vibrant growth in
cement prices among all other regions in the country, net realization per tonne
of cement sold for Ambuja Cement (with no southern presence) was higher at 7.3%
when compared to ACC at 3.8%. Even in volume terms, Ambuja posted a higher
growth rate despite ACC being a pan-India player.
Sustained
upward trajectory in cement prices in the last few months, especially in the
south and west where ACC has a strong presence, lifted the quarter’s
performance. Dealers suggest that cement prices rose the highest in the
south—as much as Rs.50/bag in the month of May-June, compared with Rs.15-20/bag
in most other regions. ACC’s net revenue rose by 7.6% from the year-ago period,
backed by a 3.7% growth in sales volume and 3.8% higher realization per tonne
of cement sold.
However,
costs seem to have weighed down on both companies. ACC’s media statement said
that manufacturing and distribution costs continued to escalate. Freight costs
rose for both firms, but Ambuja Cements had a higher increase in power and fuel
costs from the year-ago period, in absolute terms. Cost increases were mirrored
in operating margins, which were below expectations in both cases. Ambuja
Cements’ operating margin at about 21.2% was flat from a year ago. ACC’s fell
by 220 basis points to 13.3%. One basis point is one-hundredth of a percentage
point.
Kotak
Institutional Research, in its preview note on cement companies released a few
weeks ago, highlighted that inflationary pressures would rein in June quarter
operating profit per tonne at lower levels than the year-ago period.
Ambuja
Cements’ net profit (after tax credit adjustments) was in line with Bloomberg’s
consensus estimates. At Rs.386 crore, it was 19% higher than the year-ago
period. Even reported profit was 26% higher. However, ACC’s stand-alone net
profit at Rs.241 crore was 7% lower.
Emkay
Global Financial Services Limited said that ACC’s initiatives to improve clinker
consumption ratio along with waste heat recovery plants should help the company
improve its cost structure. “We expect a likely cost savings of
Rs.145-195/tonne at the manufacturing level which alone could improve ACC’s
competitiveness and margins.” This could be one reason which makes ACC more
attractive from an investor stand-point—there is room for margin expansion.
Besides,
brokerages reckon Ambuja Cements stock at Rs.218.3 enjoys higher enterprise
value per tonne than its counterpart whose shares trade at Rs.1460. Hence,
although strong cement prices and demand recovery make an optimistic case for
investment in cement stocks, ACC may see higher expansion in profitability in
the near to medium term.
AMBUJA CEMENT
FOUNDATION TO FURTHER STRENGTHEN ITS HEALTHCARE & SANITATION FOCUS FOR
MAHARASHTRA
- ACF has built
capacities for 321 Village Health Functionaries - Sakhi's, till 2014
- ACF has built more than 11000 toilets
till date & works on waste management to improve sanitation in rural
locations
Pune, 9th July
2014: Ambuja Cement Foundation (ACF) plans to further strengthen its focus
on healthcare and sanitation, through robust intervention programs planned for
Maharashtra in 2014-15. The foundation promotes comprehensive health care. It
has built a strong cadre of 321 Village Health Functionaries – Sakhis till date
to promote ante and post natal care in the region and works extensively on
sanitation.
ACF has built
11000 toilets till date. In waste management more than 3700 soak pits have been
built across its locations. ACF also plans to work for open defecation free
villages in the near future.
Ambuja Cement
Foundation has till date reached out to approximately more than 84000
individuals (16000 families), covering 160 villages, and built capacities for
180 Sakhis in the State of Maharashtra. It has developed close to 2,600 toilets
and 900 soak pits for ensuring sanitation.
Speaking on these
developments, Ms. Pearl Tiwari, Director, Ambuja Cement Foundation, said
"The infant and maternal mortality rates are still an area of concern in
our country. ACF's Comprehensive Healthcare Intervention Programmes work
towards preventive, curative and promotive care in rural locations where there
is a dearth of basic healthcare facilities. The intervention envisages
development of a healthy community through home based neo natal care, child
development and nutrition."
Ms. Tiwari further added,
"Sanitation continues to remain a thrust area for most rural locations
across India.
ACF plays a
pivotal role in improving sanitation quality by providing support to
communities and families to build toilets, and soak pits. Creating adequate
sanitation infrastructure is also imperative to ensure safety and privacy of
women."
ACF provides
Clinical Care Support through mobile health dispensaries, diagnostic centers,
and healthcamps. Preventive and Promotive Health intervention is provided
through maternal and child health support, comprehensive sanitation, nutrition
education and access to safe drinking water. These programs have had a cascading impact by
reducing infant and maternal mortality rates, enabling increased deliveries and
also empowering Women.
ACF drives
sustainable health action and access to quality health care through an
extensive participation of communities. This is done through an involvement of
village development committees, village health sanitation and nutrition
committees, Panchayat and Gram Sabhas.
The foundation
today has various health and sanitation intervention programs across the
country in the
States of
Chhatisgarh, Gujarat, Himachal Pradesh, Punjab, Rajasthan, Uttarakhand and West
Bengal.
At a national
level Ambuja Cement Foundation has reached out to approximately 1.3 million
individuals, covering 8 villages. It has successfully built capacities for 321
Sakhi's across the country. ACF has further developed close to 11500 toilets,
3737 soak pits, to enhance rural sanitation. ACF is empaneled as a National
Level NGO under Ministry of Drinking Water and Sanitation.
Ambuja Cement Foundation
Established in 1993, ACF is the social development arm of Ambuja
Cements Ltd working exclusively with rural communities on issues related to
water conservation and management, sustainable agriculture, health and
sanitation, support for school education, awareness on prevention on HIV and
AIDS, promotion of SHGs for socio-economic development of women and capacity
building of local youth and farmers. ACF undertakes projects and schemes for
promoting social and economic development for communities around the manufacturing
locations of Ambuja Cement Limited.
AMBUJA
MARKS ANOTHER MILESTONE WITH ACCREDITATION BY NATIONAL BOARD
First-ever
cement company to achieve this target
Mumbai, 13 May 2014: Ambuja Cements Ltd’s Mumbai-based
Concrete Futures Laboratory (CFL) has received accreditation for tests in
concrete from National Accreditation Board for Testing and Calibration
Laboratories (NABL), an autonomous body under the Department of Science &
Technology, Government of India.
Ambuja is the first cement company in the
country to achieve this accreditation for it lab. The company received
accreditation for 13 tests.
“We deeply value this recognition by NABL.
Ambuja Cements’ focus and commitment in customer services and focus on quality
has helped the company immensely in improving customer experience. The NABL
accreditation is proof of that commitment,” Managing Director & Chief
Executive Officer Ajay Kapur said.
This accreditation will further strengthen
Ambuja’s resolve towards excellence in customer services, Mr Kapur said.
Government of India has authorized NABL as
the accreditation body for Testing and Calibration Laboratories. It has been
set up with the aim to provide government, industry associations and industry
with a scheme for third-party assessment of the quality and technical
competence of testing and calibration laboratories.
NABL follows principles of quality management
– Customer Focus, Leadership, Involvement of Personnel, Process Approach, System
approach, Continual Improvement, Factual Data based decision making, Mutually
beneficial to organization and customer.
NABL accreditation system complies with
ISO/IEC 17011:2004 and Asia Pacific Laboratory Accreditation Cooperation
(APLAC) MR001. Based on evaluation of NABL operations by APLAC in 2000, NABL
has been granted signatory member status by APLAC and International Laboratory
Accreditation Cooperation (ILAC) under their Mutual Recognition Arrangements
(MRAs). Under these MRAs, the reports issued by NABL accredited laboratories
are considered to be equivalent to reports issued by laboratories accredited by
(currently) 76 accreditation bodies in 64 economies.
In Mumbai, demand from the B2B segment has
been on an upward trend. It contributes about 70% of the total demand. Concrete
is the largest material used in this segment.
With the growing need of B2B, materials used
in concrete has also changed over the last few years.
Ambuja’s CFL has been in the forefront in
meeting the needs of the B2B segment. The NABL accreditation will provide CFL
with a clear differentiation in the market place.
AMBUJA
LAUNCHES AMBUJA PLUS IN GUJARAT
Advanced
formula provides additional strength than ordinary concrete
New premium
quality product aimed at Individual House Builders
Ahmedabad, 05th September, 2014: Ambuja
Cement, one of India’s leading cement manufacturers, launched a premium quality
cement product, AMBUJA PLUS in the state of Gujarat today. This innovative product
is created with an advanced formula, offering additional strength than ordinary
cement.
At a grand launch, the new product AMBUJA
PLUS is aimed mainly at small consumers or Individual House Builders.
Speaking at the launch event, MD&CEO Ajay
Kapur reminisced about how Ambuja’s legacy of over 25 years is linked to the
state of Gujarat. “We took root in Gujarat. We owe the best quality to the
people of Gujarat.”
AMBUJA PLUS is a special quality PPC cement
with advanced SPE technology that makes concrete stronger and easier to work
with. It is packed in a special tamperproof bag which keeps moisture out and
thus retains the freshness of cement for a longer time.
Today, we are not just introducing a product
in the market, said Mr Kapur. “Our aim is to provide services for our esteemed
customers that will be extended by the Customer Support Group (CSG).” Ambuja’s
CSG, comprising of expert civil engineers and technical advisors provide
technical services at a nominal fee for contractors and customers who are
building smaller houses for personal use.
Ambuja Cement has been a household name in
Gujarat where it began its first plant in 1986. Today, Ambuja produces 5
million tons from its plant at Ambujanagar in Junagadh district. It has a
captive port at Muldwarka, and a grinding unit and sea terminal at Surat.
AMBUJA
RACES PAST INDIAN CEMENT COMPANIES IN CARBON DISCLOSURE LEADERSHIP INDEX
Earns
commendable score of 92, ranked 10 across sectors
New Delhi, 20th October, 2014: The recent ‘India
200 Climate Change Report 2014’,published by the global Carbon Disclosure
Project (CDP), announced that Ambuja Cement has raced past other Indian cement
companies to achieve a commendable score of 92(out of 100) and secured a rank
of 10 across sectors in the highly prestigious Carbon Disclosure Leadership
Index (CDLI).
On hearing the news, Ambuja’s MD&CEO Ajay
Kapur expressed both pride and delight on the strides made by the company in
achieving this ranking. “This means a great deal to us,” said Mr Kapur. “It is
evident that the Best Practices followed by Ambuja will set a trend within the
sector and aligned with our twin aim to conserve natural resources and reduce
CO2 emissions.”
The CDP report quotes the Ambuja’s Best
Practice example: Over 91% of Ambuja product is fly ash blended cement whereas
the industry average is 67%. This helps conserving natural limestone and also
helps reduce CO2 emissions due to its burning.
This is no mean feat as it involves
systematic planning and understanding over a considerable period of time to
ensure traditional material and methods are replaced by newer ones in the
manufacture of cement.
Under the materials sector, Ambuja leads the cement
companies followed by ACC (ranked 89), Shree (87) and Ultratech (77); and only
second to Tata Steels in this sector.
Good performance and disclosure scores are
used by investors as a proxy of good climate change management or climate
change performance of companies.
This year, a large number of companies have
qualified to be included in CDLI in 2014 compared to last year. The range of
disclosure scores achieved in 2014 by Indian companies varies from 13 to 99.
Despite the fact that CDLI cut-off was raised to 80 in 2014 (from 70 in 2013),
5 Indian companies (compared to last year’s 3) have earned high CDP performance
scores.
Each year, company responses are analysed and
scored against two parallel scoring schemes – performance & disclosure.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered
forfeited for violation of money laundering or international anti-terrorism
laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.41 |
|
UK Pound |
1 |
Rs.98.06 |
|
Euro |
1 |
Rs.76.67 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
74 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major sections
of this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NB |
NEW BUSINESS |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.