C. V.

Raman Global University Bhubaneswar,

Odisha, India – 752054

Principle of Management
Report
On
Performance Analysis of Ultratech Cement Ltd.

Submitted By :
AMRIT MOHAPATRA : 1901227114
VIKASH KUMAR : 1901227626
ABHINAV SHARMA : 1901227100
BIBEK MOHAPATRA : 1901227235
SUNIT ROY : 1901227238
ADITYA PRASAD PANDA : 1901227103
ABHILASH MOHAPATRA : 1901227098

Faculty in Charge :
Dr. Laxmidhar Panda

Date of Submission : 18 November 2022

 CONTENTS

1.Comapany Profile
1.1 UltraTech Cement
1.2 ACC Limited
1.3 Ambuja Cements Ltd
1.4 Shree Cement
2. Fundamental Analysis
i. Target – Competitor
2.1 Profit & Loss
2.2 Five Year Analysis
2.3 Trend Ratio
2.4 Balance Sheet & Cash Flow
2.5 Peer Competitor
3. Major Findings
4. References
 OBJECTIVE

Performance Analysis of UltraTech Cement

[UltraTech Cement]
 COMPANY PROFILE

1. UltraTech Cement Ltd

UltraTech Cement Limited is the cement flagship company of the Aditya Birla Group. A USD
7.1 billion building solutions powerhouse, UltraTech is the largest manufacturer of grey cement,
ready mix concrete (RMC) and white cement in India. It is the third largest cement producer in
the world, excluding China. UltraTech is the only cement company globally (outside of China)
to have 100+ MTPA of cement manufacturing capacity in a single country. The Company’s
business operations span UAE, Bahrain, Sri Lanka and India.

Headquarter : Mumbai, Maharashtra, India

Founded : 1983

Market Cap : ₹ 198,465 Cr.

Current Price : ₹ 6,872
P/E : 29.8
Dividend Yield : 0.55%
ROCE : 14.3%
ROE : 15.2%
 2. ACC Limited

ACC Limited (ACC) is a leading player in the Indian building materials space, with a pan-India
operational and marketing presence. It is a member of the Adani Group - the largest and fastest-
growing portfolio of diversified sustainable businesses. Synonymous with cement, ACC has
established its reputation as a pioneer organisation that has consistently set new benchmarks with
its innovative research and product development. With experience and expertise spanning over
eight decades, ACC has actively contributed to India’s progress.

Headquarter: Mumbai, Maharashtra, India

Founded : 1936

Market Cap : ₹ 45,971 Cr.

Current Price : ₹ 2,448
P/E : 52.6
Dividend Yield : 2.37%
ROCE : 19.2%
ROE : 14.1%
 3. Ambuja Cements Ltd

Ambuja Cements Ltd is India’s foremost cement company known for its hassle-free, home-
building solutions. Unique products tailor-made for Indian climatic conditions, sustainable
operations and initiatives that advance the company’s philosophy of contributing to the larger
good of the society, have made it the most trusted cement brand in India.
Headquarter : Mumbai, Maharashtra, India

Founded : 1983

Market Cap : ₹ 114,026 Cr.

Current Price : ₹ 574
P/E : 62.2
Dividend Yield : 1.10%
ROCE : 22.1%
ROE : 11.8%
 4. Shree Cement Ltd

Shree Cement is an Indian cement manufacturer, founded in Beawar, Rajasthan, in 1979. Now
headquartered in Kolkata (soon to be shifted entirely to Noida), it is one of the biggest cement
makers in Northern India. Shree Cement has moved in the last two decades from having 2
million tonne (mt) production capacity to becoming the country’s third largest cement player,
with an installed capacity of 43.3 mt in India and 50.4 mt overseas. It also produces and sells
power under the name Shree Power (Captive Power Plant) and Shree Mega Power (Independent
Power Plant).

Headquarter: Kolkata, West Bengal, India

Founded : 1979

Market Cap : ₹ 83,890 Cr.

Current Price : ₹ 23,240
P/E : 52.4
Dividend Yield : 0.39%
ROCE : 16.6%
ROE : 14.1%
 FUNDAMENTAL ANALYSIS

TARGET COMPANY : UltraTech Cement Ltd.

QUATERLY RESULT :

QUARTERLY RESULT- UltraTech Cement

14,000
12,000
10,000
8,000
6,000
4,000
2,000
0

Operating Profit Profit before tax Net Profit

SHAREHOLDING PATTERNS
COMPETITOR COMPANY :
1. ACC Limited.
QUATERLY RESULT:

ACC Cement
Sales + Expenses + Operating Profit OPM %
Other Income + Interest Depreciation Profit before tax
Tax % Net Profit EPS in Rs Dividend Payout %
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 TTM
-2,000

SHAREHOLDING PATTERNS
2. AMBUJA CEMENTS LTD.
QUATERLY RESULT:

QUARTERLY RESULT- Ambuja Cement

1200

1000

800

600

400

200

0
1 2 3 4 5 6 7 8 9

Operating Profit Profit before tax Net profit

SHAREHOLDING PATTERNS
3. SHREE CEMENT LTD.
QUATERLY RESULT:

QUARTERLY RESULT- Shree Cement

1,400.00
1,200.00
1,000.00
800.00
600.00
400.00
200.00
-
Jul-20

Jul-21

Jul-22
May-21

Mar-22

May-22
Sep-20
Oct-20

Mar-21
Jan-21
Feb-21

Sep-21
Oct-21

Jan-22
Feb-22

Sep-22
Nov-20
Dec-20

Apr-21

Nov-21
Dec-21

Apr-22
Jun-20

Aug-20

Jun-21

Aug-21

Jun-22

Aug-22
Operating Profit Profit before tax Net profit

SHAREHOLDING PATTERNS
1. Profit & Loss : It help us to understand an calculate CAGR [Compound Annual
Growth Rate]. It is a business and investing specific term for the geometric progression
ratio that provides a constant rate of return over the time period.

Table : PROFIT & LOSS – UltraTech Cement

Table : PROFIT & LOSS – ACC Cement

Table : PROFIT & LOSS – Ambuja Cement

Table : PROFIT & LOSS – Shree Cement

 UltraTech Cement ACC Cement
14,000
Sales + Expenses +
Operating Profit OPM %
12,000
Other Income + Interest
10,000 Depreciation Profit before tax
Tax % Net Profit
8,000
EPS in Rs Dividend Payout %

6,000 18,000
16,000
14,000
4,000
12,000
10,000
2,000 8,000
6,000
0 4,000
2,000
0

TTM
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
-2,000
Operating Profit Profit before tax Net Profit

Ambuja Cement Shree Cement

3,500.00 4,500.00

4,000.00
3,000.00

3,500.00
2,500.00
3,000.00
2,000.00
2,500.00

1,500.00
2,000.00

1,000.00 1,500.00

1,000.00
500.00

500.00
-
-
1 2 3 4 5 6

Operating Profit Profit before tax Net profit Operating Profit Profit before tax Net profit
2. Five - Years Analysis :

COMPOUNDED SALES GROWTH (IN %)

UltraTech ACC Cement Ambuja Shree
Cement Cement Cement
10 YEARS 20 21 20 25
5 YEARS 24 18 31 15
3 YEARS 27 21 11 11
TTM 26 24 25 38

COMPOUNDED PROFIT GROWTH (IN %)

UltraTech ACC Cement Ambuja Shree
Cement Cement Cement
10 YEARS 22 26 35 33
5 YEARS 17 15 48 27
3 YEARS 25 18 28 15
TTM 31 29 39 18

STOCK PRICE CAGR (IN %)

UltraTech ACC Cement Ambuja Shree
Cement Cement Cement
10 YEARS 18 42 NIL 52
5 YEARS 10 27 NIL 27
3 YEARS 18 33 NIL 17
1 YEAR -1 18 23 3

RETURN OF EQUITY (IN %)

UltraTech ACC Cement Ambuja Shree
Cement Cement Cement
10 YEARS 18 20 22 29
5 YEARS 16 17 23 29
3 YEARS 15 17 24 27
TTM 17 15 25 24
3. Trend Ratio :

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22

Debtor Days 26 25 20 21 21

Inventory Days 226 214 234 207 256

Days Payable 165 165 188 234 269

Cash Conversion Cycle 87 74 66 -6 9

Working Capital Days -17 -16 -25 -26 -21

ROCE % 12%RATIO –UPL
Table : TREND 11% 12% 15% 14%

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22

Debtor Days 84 85 70 56 60

Inventory Days 141 126 158 149 178

Days Payable 115 121 117 113 115

Cash Conversion Cycle 110 90 111 93 122

Working Capital Days 89 87 81 79 101

ROCE % 25% 25% 23% 22% 17%
Table : TREND RATIO – ACC Cement

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22

Debtor Days 101 115 120 130 124
Inventory Days 135 133 86 113 108
Days Payable 219 202 216 259 238
Cash Conversion Cycle 18 47 -10 -16 -7
Working Capital Days 78 66 37 32 33
ROCE % 8% 7% 9% 8% 17%
Table : TREND RATIO – Ambuja Cement

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22

Debtor Days 102 103 75 99 130
Inventory Days 66 112 70 90 120
Days Payable 25 24 17 33 30
Cash Conversion Cycle 143 191 128 156 221
Working Capital Days 127 173 116 134 185
ROCE % 39% 32% 34% 31% 28%
Table : TREND RATIO –Shree Cement
4. Balance Sheet and Cash Flows :
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Cash from Operating Activity 3888 5956 8972 12500 9283
Cash from Investing Activity 1866 1165 -4192 -8856 2257
Cash from Financing Activity -5735 -6757 -5076 -4356 -12498
Net Cash Flow 18 364 -295 -712 -958
Table : CASH FLOW – UltraTech Cements

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22

Share Capital 102 102 153 153 153
Reserves 7,867 7,870 7,871 7,633 8,048
Borrowings 1,122 1,638 1,112 1,329 1,778
Other Liabilities 2,959 4,293 4,692 6,168 9,654
Total Liabilities 12,050 13,903 13,828 15,283 19,633
Fixed Assets 4,902 4,981 5,354 5,598 5,477
CWIP 663 889 886 722 909
Investments 594 1,441 1,406 1,441 2,374
Other Assets 5,891 6,592 6,182 7,522 10,873
Total Assets 12,050 13,903 13,828 15,283 19,633
Table : BALANCE SHEET - UltraTech Cements

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22

Cash from Operating Activity 319 391 698 725 529
Cash from Investing Activity -180 -322 -985 -2430 -110
Cash from Financing Activity -106 -125 350 1690 -177
Net Cash Flow 33 -56 63 -15 241
Table : CASH FLOW – ACC Cements

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22

Share Capital 14 14 14 15 15
Reserves 1,911 2,272 2,605 5,327 6105
Borrowings 83 49 519 373 316
Other Liabilities 618 820 1,087 1,287 1,354
Total Liabilities 2626 3,155 4,225 7,002 7,791
Fixed Assets 998 4,981 5,354 2138 2452
CWIP 90 183 271 288 114
Investments 161 129 150 872 900
Other Assets 1,378 1,657 1,946 3,704 4,325
Total Assets 2,626 3,155 4,225 7,002 7,791
Table : BALANCE SHEET – ACC Cements
 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Cash from Operating Activity 49 -75 222 424 223
Cash from Investing Activity -40 -35 -118 -282 -281
Cash from Financing Activity 7 -65 -61 -47 -63
Net Cash Flow 16 -26 43 95 -120
Table : CASH FLOW – Ambuja Cement

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22

Share Capital 275 275 499 499 499
Reserves 665 536 710 1,0291 1,425
Borrowings 10 20 36 33 38
Other Liabilities 695 1,016 848 1,097 1,047
Total Liabilities 1,644 1,846 2,093 2,658 3,455
Fixed Assets 267 279 319 309 390
CWIP 9 8 10 14 35
Investments 2 1 87 291 357
Other Assets 1,367 1,558 1,676 2,043 2,227
Total Assets 1,644 1,846 2,093 2,658 3,455
Table : BALANCE SHEET – Ambuja Cement

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22

Cash from Operating Activity 29 -52 263 170 -65
Cash from Investing Activity -31 -46 -53 -149 64
Cash from Financing Activity 2 102 -169 -40 -25
Net Cash Flow 0 4 41 -19 -26
Table : CASH FLOW – SHREE Cements

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22

Share Capital 4 4 4 4 4
Reserves 294 405 560 724 768
Borrowings 128 247 94 58 174
Other Liabilities 77 100 94 122 146
Total Liabilities 503 756 752 908 1,092
Fixed Assets 148 150 203 191 228
CWIP 7 35 18 18 11
Investments 0 0 9 151 45
Other Assets 349 570 522 549 807
Total Assets 504 755 752 909 1,091
Table : BALANCE SHEET – SHREE Cements
 4. PEER COMPARISION

Qtr Qtr
CMP R Mar Div NP Sales
Name P/E Profit Sales ROCE %
s. Cap Rs.Cr. Yld % Qtr Rs.Cr. Qtr Rs.Cr.
Var % Var %
Ambuja
1 574.20 62.23 114025.62 1.10 51.30 -87.57 7143.17 7.46 22.14
Cements
UltraTech 6871.8
2 29.80 198465.28 0.55 758.70 -42.33 13892.69 15.61 14.29
Cements 5
Shree 23239. 52.39
3 83889.90 0.39 183.24 -67.44 4038.03 19.70 16.61
Cement 70
ACC 2448.1
4 52.63 45971.28 2.37 -87.32 -115.79 3987.34 6.36 19.20
Cement 5

PEER COMAPRISION
1200

1000

800

600

400

200

0
1 2 3 4

P/E NP Qtr Rs.Cr. ROCE %

Important Terminology
ROCE : ROCE stands for Return On Capital Employed. A higher ROCE indicates
stronger profitability across company comparisons.

P/E : P/E suggests that investors are expecting higher earnings growth in the future
compared to companies with a lower P/E. A low P/E can indicate either that a company
may currently be undervalued or that the company is doing exceptionally well relative to
its past.

Note - * So PEs below 20 may provide good investment opportunities; lower the PE
below 20, more attractive the investment potential.
 Major Finding

As analysed above in PEER COMARISION we could state that the Ambuja

Cements has higher ROCE i.e. it will return higher profit. But it seems that its P/E
is much higher, so its potential may not be that much high. As per summarizing
the following terms we could state that UltraTech Cements is the best for
investment, as it has much larger market cap and also a low P/E resulting in better
potential for future. Even its net profit seems high among its competitors.
 REFERNCES

 https://www.screener.in/company/ULTRACEMCO/consolidated/
 https://www.screener.in/company/AMBUJACEM/consolidated/
 https://www.screener.in/company/ACC/consolidated/
 https://www.screener.in/company/SHREECEM/consolidated/