Ultratech Background:

Ultratech Cement was incorporated in 2000 as Larsen & Toubro. Later it

was demerged and acquired by Grasim and was renamed as Ultra Tech
Cement in 2004. Today Ultatech cement a part of Aditya Birla group, is
the country’s largest exporter of cement clinker. UltraTech Cement
Limited has an annual capacity of 52 million tonnes. It manufactures and
markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement
and Portland Pozzalana Cement. It also manufactures ready mix concrete
(RMC). All the plants have received ISO 9001 certification.
The company has 11 integrated plants, one white cement plant, one
clinkerisation plant in UAE, 15 grinding units 11 in India, 2 in UAE, one in
Bahrain and Bangladesh each and five terminals, four in India and one in
Sri Lanka.
The export markets span countries around the Indian Ocean, Africa,
Europe and the Middle East.
Narmada Cement Company Limited was amalgamated with UltraTech in
May 2006, while Samruddhi Cement Limited was amalgamated with
UltraTech Cement Limited in July 2010.
UltraTech Cement Middle East Investments Limited, a wholly owned
subsidiary of the Company acquired management control of ETA Star
Cement together with its operations in the UAE, Bahrain and Bangladesh
in September, 2010
UltraTech's other subsidiaries are Dakshin Cements, Harish Cements,
UltraTech Ceylinco (P) and UltraTech Cement Middle East Investments.
it manufactures ordinary portland cement commonly used in dry–lean
mixes, general–purpose ready–mixes, and even high strength pre–cast and
pre–stressed concrete.
It produces Portland blast furnace that has features like lighter colour,
better concrete workability, easier finishability, higher compressive and
flexural strength, improved resistance to aggressive chemicals and more
consistent plastic and hardened consistency.It also manufactures portland
pozzolana cement.
Ultratech cement exports over 2.5 million tonnes per annum which
accounts for 30% of country’s total exports. It exports to countries like
Africa, Europe and the Middle East.
Milestone
Ultratech Cement received Greentech Environment Excellence Award by
the Greentech Foundation, New Delhi in the year 2000–2001
The Aditya Birla Group is the 11th largest cement producer in the world
and the seventh largest in Asia.
In 2004–05 it received State and Zonal level I prize for overall performance
in Mines safety.
2009–10
State Level Environment Award (Plant)
Rajiv Gandhi Environment Award for Clean Technology
National Award for Prevention of Pollution
Greentech Environment Excellence Gold Award
Asian CSR Award
Business World FICCI–SEDF CSR Award
IMC Ramkrishna Bajaj National Quality Award
2010–11
Subh Karan Sarawagi Environment Award
ASSOCHAM CSR Excellence Award"
Product and Service:
Trusted by millions, UltraTech Building Solutions is the preferred
destination of home builders for products, services and solutions needed
for building their homes.The first UltraTech Building Solutions store
started in 2007 and today we offer a wide range of products, services and
solutions through our network of 2500+ stores across India. We offer our
trustworthy expertise to help home builders take the right decisions at all
stages of home building by providing customised solutions. With the largest
network of home building stores in the country, our widespread reach
coupled with immense expertise makes UltraTech Building Solutions a
reliable partner in your home building journey.immense expertise makes
UltraTech Building Solutions a reliable partner in your home building
journey.services

Products : cement,steel,painting system,waterproofing and

chemicals,electricals,plywood,Shuttering Ply,Power and Hand
Tools,Pipes,flooring,Sanitary Ware,Mortars,Roofing,Water Storage Tanks

Services :Cost Calculator,EMI Calculator,Product Predictor,Store Locator

Solutions:

Mobile Concrete Lab :

Get on-ground technical assessment of your construction materials and

determine the consistency and compressive strength of the concrete
Vaastu report ,pest control , water testing
Business Location:
Adityapuram Sawa Shambhupura Road Dist. Chittorgarh, Rajasthan
312622

(01472) 221001-10

(01472) 221020

Bhogasamudram, Tadipatri Mandal, Anantapur District, Andhra Pradesh

- 515 413.

(08558) 288847/41

(08558) 288821/59

P.O. Awarpur Cement Project, Taluka: Korpana, District: Chandrapur,

Maharashtra - 442 917.

(07173) 266323

(07173) 266339

Village Baga, P.O - Kandhar, Tehsil: Arki, District: Solan (H.P.) - 171102

(01796) 223300, 223200

(08558) 288821/59

Survey No. 99, Vill. Post Budawada Mandal-Jaggiyapet, District Krishna,

Andhra Pradesh-521175

(08654) 285011-18

(08654) 285010
 Jaypee Puram, P.O. Jaypee Puram Rewa - 486450 (M.P)

(07662) 409301- 08

(07662) 409309

Post : Dalla Distt Sonebhadra Uttar Pradesh - 231207

(05445) 265801 – 02 / 265778

(05445) 265776

P. O. Kovaya Taluka: Rajula, District: Amreli, Gujarat - 365541

(02794) 283034

(02794) 283036

Village & Post: Hirmi, Taluka: Simga, Baloda Bazar - Bhatapara,

Chhattisgarh - 493 195

(07726) 281217/218/221

(07726) 281268

P B No. 10 Village: Babarkot, Taluka: Jafrabad, District: Amreli, Gujarat -

365 540

(02794) 245103

(02794) 245110

V & P. O. Mohanpura, Tehsil: Kotputli Dist. Jaipur, Rajasthan 303108

(01421) 215719

Aditya Nagar, Malkhed Road, Tehsil: sedam District: Gulbarga, Karnataka -

585292

(08441) 288888
 (08441) 288624/ 288365

Aditya Nagar, Malkhed Road, Tehsil: sedam District: Gulbarga, Karnataka -

585292

(08441) 288888

(08441) 288624/ 288365

Grasim Vihar Village, PO Rawan, Tehsil : Simga Dist. Baloda Bazar

Bhatapara Chhattisgarh 493 196

(07726) 288217-20

(07726) 288215, 288209

Reddipalayam PO, District: Ariyalur, Tamil Nadu - 621 704

04329 - 249240

04329 – 249253

Village: Vayor, Taluka Abdasa, District: Kutch, Gujarat - 370511

02831 - 279200

02831 – 279279

Jaypee Vihar, Majhigawan P.O. Bharatpur, Sidhi - 486776

(07802) 276701 - 276709

(07802) 276715

Vikram Nagar, P.O - Khor Tehsil: Jawad, District: Neemuch Madhya Pradesh
- 458 470

(07420) 230554, 230567

(07420) 235524

White Cement
Birla White Rajashree Nagar, P.O Kharia Khangar, Tehsil: Bhopalgarh,
District: Jodhpur, Rajasthan - 342 606

(02920) 264040 / 47

(02920) 264225 / 264222

Shareholder pattern:

No of Shares % Share Holding

Holder's Name

NoOfShares 288664987 100%

Promoters 170338945 59.01%

ForeignInstitutions 45443233 15.74%

NBanksMutualFunds 29203719 10.12%

CentralGovt 133376 0.05%

Others 10059953 3.48%

GeneralPublic 15931717 5.52%

FinancialInstitutions 14519112 5.03%

ForeignPromoter 2744168 0.95%

GDR 290764 0.1%

Board of Directors :

Name Designation

Alka Bharucha Independent Director

Arun Adhikari Independent Director

Ashish Dwivedi Chief Executive Officer

Atul Daga WholeTime Director & CFO

E R Raj Narayanan Chief Manufacturing Officer

K C Jhanwar Managing Director

K K Maheshwari Vice Chairman & Non Exe.Dire

Kumar Mangalam Birla Chairman

Pramod Rajgaria President

Rajashree Birla Non Executive Director

Ramesh Mitragotri Chief Human Resource Officer

S B Mathur Independent Director

Sanjeeb Kumar Chatterjee Co. Secretary & Compl. Officer

Sukanya Kripalu Independent Director

Sunil Duggal Independent Director

Vivek Agrawal Chief Marketing officer

Industry Overview of Cement Industry :

India is the second largest producer of cement in the world. It accounts for
more than 7% of the global installed capacity. India has a lot of potential
for development in the infrastructure and construction sector and the
cement sector is expected to largely benefit from it. Some of the recent
initiatives, such as development of 98 smart cities, is expected to provide a
major boost to the sector.

Aided by suitable Government foreign policies, several foreign players such

as Lafarge-Holcim, Heidelberg Cement, and Vicat have invested in the
country in the recent past. A significant factor which aids the growth of this
sector is the ready availability of raw materials for making cement, such as
limestone and coal.

India’s overall cement production accounted for 294.4 million tonnes (MT)
in FY21 and 329 million tonnes (MT) in FY20.

Market size

Cement production reached 329 million tonnes (MT) in FY20 and is

projected to reach 381 MT by FY22. However, the consumption stood at
327 MT in FY20 and will reach 379 MT by FY22. The cement production
capacity is estimated to touch 550 MT by 2020. As India has a high
quantity and quality of limestone deposits through-out the country, the
cement industry promises huge potential for growth.

As per ICRA, in FY22, the cement production in India is expected to

increase by ~12% YoY, driven by rural housing demand and government’s
strong focus on infrastructure development.

As per Crisil Ratings, the Indian cement industry is likely to add ~80
million tonnes (MT) capacity by FY24, the highest since the last 10 years,
driven by increasing spending on housing and infrastructure activities.

Higher allocation for infrastructure–34.9% in roads, 8.7% in metros and

33.6% in railways in budget estimates of FY22, over FY21, is likely to boost
demand for cement.According to CLSA (institutional brokerage and
investment group), the Indian cement sector is witnessing improved
demand. Key players reported by the company are ACC, Dalmia and
Ultratech Cement. In the second quarter of FY21, Indian cement
companies reported a sharp rebound in earnings and demand for the
industry increased, driven by rural recovery. With the rural markets
normalising, the demand outlook remained strong. For FY21, CLSA
expects a 14% YoY increase in EBITDA in the cement market for its
coverage stocks.

INVESTMENTS:
According to the data released by Department for Promotion of Industry
and Internal Trade (DPIIT), cement and gypsum products attracted
Foreign Direct Investment (FDI) worth US$ 5.28 billion between April
2000 and June 2021.

In 2021, working remotely is being adopted at a fast pace and demand for
affordable houses with ticket size below Rs. 40-50 lakh is expected to rise in
Tier 2 and 3 cities, leading to an increase in demand of cement.

Private equity investments in real estate surged 24% YoY to US$ 477
million between July 2021 to September 2021
GOVERNMENT INITIATIVES:
In order to help private sector companies, thrive in the industry, the
Government has been approving their investment schemes. Some of the
initiatives taken by the Government off late are as below:

● In October 2021, Prime Minister, Mr. Narendra Modi, launched the

‘PM Gati Shakti - National Master Plan (NMP)’ for multimodal
connectivity. Gati Shakti will bring synergy to create a world-class,
seamless multimodal transport network in India. This will boost the
demand for cement in the future.
● In July 2021, the government established a council of 25 members
(comprising UltraTech Cement MD Mr. K C Jhanwar, Dalmia
Bharat Group CMD Mr. Puneet Dalmia) for the cement industry to
reduce waste, achieve maximum production, enhance quality, reduce
costs and encourage standardisation of products.
● In Union Budget 2021-22, the Government of India extended
benefits, under Section 80-IBA of the Income Tax Act, until March
31, 2021, to promote affordable rental housing in India.
● As per the Union Budget 2021-22, the government approved an
outlay of Rs. 1,18,101 crore (US$ 16.22 billion) for the Ministry of
Road Transport and Highways, and this step is likely to boost the
demand for cement.
● As per the Union Budget 2021-22, National Infrastructure Pipeline
(NIP) expanded to 7,400 projects from 6,835 projects.
● The Union Budget allocated Rs. 13,750 crore (US$ 1.88 billion) and
Rs. 12,294 crore (US$ 1.68 billion) for Urban Rejuvenation Mission:
AMRUT and Smart Cities Mission and Swachh Bharat Mission,
respectively and Rs. 27,500 crore (US$ 3.77 billion) has been allotted
under Pradhan Mantri Awas Yojana.

Road ahead :

The eastern states of India are likely to be the newer and untapped markets
for cement companies and could contribute to their bottom line in future.
In the next 10 years, India could become the main exporter of clinker and
gray cement to the Middle East, Africa, and other developing nations of the
world. Cement plants near the ports, for instance the plants in Gujarat and
Visakhapatnam, will have an added advantage for export and will
logistically be well armed to face stiff competition from cement plants in
the interior of the country. India’s cement production capacity is expected
to reach 550 MT by 2025.

Due to the increasing demand in various sectors such as housing,

commercial construction and industrial construction, cement industry is
expected to reach 550-600 million tonnes per annum (MTPA) by the year
2025.

A number of foreign players are also expected to enter the cement sector
owing to the profit margins and steady demand.

Business Performance :

Shares of ultratech cement dipped 3 per cent to Rs 7,663.50 on the BSE in

Tuesday’s intra-day trade, erasing the entire previous day’s gain as the
company reported a weak operational performance for October-December
quarter (Q3FY22) on account of higher cost pressure and weak demand
owing to unseasonal rains and festive season. The stock of cement major
corrected 7 per cent from its record high level of Rs 8,267 hit on November
8, 2021.
In Q3FY22, UltraTech’s revenues were up 5.4 per cent at Rs 12,471 crore
year on year (YoY) led by higher realisations while earnings before
interest, taxes, depreciation, and amortization (EBITDA) declined 24.6 per
cent YoY to Rs 2,221 crore. EBITDA margin was down 707 bps YoY, down
470 bps QoQ to 17.8 per cent.
The company is hopeful that cost inflation has peaked out and, with
demand picking up, all of this should bolster volume growth and lead to
margin rebound January-March quarter (Q4FY22) onwards.
During the quarter, trade sales were impacted more than non-trade sales,
as overall cement demand remained subdued. However, with the onset of
the peak season and rising construction activities, cement demand is
expected to revive in Q4, driven by a pick-up in the government-led
infrastructure and housing projects. Rural and urban demand is also
expected to pick up going forward. All of this augurs well for the Company,
UltraTech said on a outlook.
The board also approved capex of Rs 965 crore towards modernisation and
expansion of capacity at Birla White from the current 6.5 LTPA to 12.53
LTPA, in a phased manner. The capacity expansion will help Birla White
strengthen its presence in the growing white cement market, reducing its
dependence on high-cost imports, the company said.
Analyst at ICICI Securities expects its capacity to increase at CAGR of
~7.4 per cent to 131 MT by FY23E against industry average capacity
CAGR of 5.6 per cent during the same period. The new organic capacities
are being added at lower capital cost (US$60/t) that will help in boosting
return ratios (to generate 16-18 per cent IRR).
Despite capex plans, the company also aims to become net debt-free by
FY23E supported by strong operating cash flows (from existing and
acquired assets) and through efficient w/cap management, the brokerage
firm said with maintain ‘buy’ rating and target price of Rs 9,300 per share
on the stock.
“Cement demand is expected to remain strong, led by the government’s
thrust on Infrastructure development and recent improvement in housing
demand. UltraTech is in a strong position to gain market share, led by its
strong distribution network. Its capacity expansion plans and scope for
improvement in utilization of existing capacities offers strong growth
visibility. UltraTech has earmarked expansion plans in the White Cement
segment, which will aid growth in the segment. The management is hopeful
of achieving higher growth in the Construction Chemical segment,” Motilal
Oswal Financial Services said. It reiterates ‘buy’ rating on the stock with
target price of Rs 9,080 per share.

COMMON SIZE ANALYSIS

VERTICAL ANALYSIS
Vertical Analysis is a proportionate analysis method of analysing the
financial statements. Here, each line on a financial statement is analysed as
a percentage of another line. It compares the relationship between a single
item on the Financial Statements to the total transactions within one given
period. It shows the relative change in the company’s accounts over a given
period. It is very useful in identifying trends in a business. On an income
statement vertical analysis is conducted by converting each line into a
percentage of gross revenue. It is more frequently used by investors and
creditors to compare company performance with other companies in the
same industry.

HORIZONTAL ANALYSIS
Horizontal analysis uses a line-by-line comparison to compare the totals. It
is a financial statement analysis technique that shows changes in the
amounts of corresponding financial statement items over a period of time.
For example, in a comparative income statement for 2020 and 2021,
horizontal analysis compares revenue totals for both years to see if it
increased, decreased, or remained relatively stagnant. This is used by
analysts to identify and analyse growth patterns and historical trends. It
helps in determining any increase or decrease in specific values that have
taken place. For Ultratech Cement, the horizontal analysis is conducted on
the basis of taking the average of the last 5 years data.
 STATEMENT OF PROFIT AND LOSS

VERTICAL ANALYSIS
As per the Income Statement of Ultratech Cement Limited, the revenue
from its operations consists of about 97.6% of the total revenue generated
by the company and have been more or less consistent over the years.
The cost of materials consumed in relation to the total income has
decreased by about 60% over the years owing to the expansionary projects
undertaken by the company. In 2021, this accounted for 31.33% of the total
income. However, the total expenses incurred by the company is seen to be
on a declining trend and between 2017 to 2021, it has decreased by about
27.6%. Other expenses incurred by the company constitute a major part of
these expenses.
The profits made by the company before exceptional items and tax, i.e.,
after deducting the expenses from the revenue, constituted 27.81% of the
total income. This, apart from a slight dip in the year 2017, is seen to be
increasing steadily over the years. This is quite impressive considering the
size of the company and its range of operations. The final profits made by
the company, after providing for the tax expenses stood at 17.85% of the
total income as for the year 2021. Over the 5-year period, the profit has
seen to grown drastically which is a positive sign for both the management
and the shareholders of the company.

HORIZONTAL ANALYSIS
The horizontal analysis gives the year-on-year comparison of every item
line by line as presented in the financial statements. As for Ultratech
Cement , the average for the last 5 years is taken to be 100 and the analysis
is further conducted on this basis. The total revenue generated by the
company over the years have seen a slight growth over the years but has
managed to stay close to the average indicating a stability in its earnings.
There have been measly variations in the total revenue generated from
operations thereby not affecting the total income in any extravagant
manner.
The cost of materials consumed over the years have been decreasing
consistently and as for 2021, it stands at almost 27% above the average cost
of the 5-year period. In contrast, the purchase of stock-in-trade has been
decreasing consistently. Major fluctuations can be seen in the finance costs
incurred by the company where for the year 2017, it was about 282% of the
average in comparison to 1.31% for the year 2020. This indicates the costs
of borrowings undertaken by the company for that financial year.
As for the pre-tax profits earned by the company, there can be seen slight
variations of up to 5% over the years, which is fine when considering the
size and the range of operations of the company. For the year 2021, the
profits earned were at par with the 5-year average.
The total tax expenses have been increasing over the years apart for the
year 2021, where there is seen a sudden dip in the taxes paid by almost
50%. This consequently has helped in the rise of the total profits earned by
the company, which has been on a steady rise over the last 5 years.
 BALANCE SHEET

VERTICAL ANALYSIS
As per the Balance Sheet of Ultratech Cement Limited, it can be seen the
value of property, plant and equipment has been increasing over the years.
This is due to the fact that these assets are being subject to appreciation
resulting in the appretiated value of it. The current tax assets, though
forming only a small portion of the total assets, have seen the most rapid
year-on-year growth over the years. Other than this, there hasn’t been any
major changes in the value of the non-current assets. The non-current
assets constitute about 60% of the total assets.
As for the current assets, the status of inventory has been fluctuating over
the year. The cash and cash equivalent is on an increasing trend whereas
the bank balance is showing a declining trend indicating that the company
is doing more cash transactions in comparison to bank.
The total equity held by Ultratech Cement amounts to more than half of
the total assets owned by the company. In contrast to this, the long-term
liabilities though on an increasing trend over the years, constitute only
about 5% of the total equity and liabilities held by the company. This
indicates that the company has been raising its funds through the
shareholders and is largely dependant on its share capital for its business
activities.
The current liabilities is on a declining trend apart from the year 2019,
where there has been a sudden spike in other financial liabilities
HORIZONTAL ANALYSIS
The horizontal analysis of Ultratech Cement is done by taking the average
of the last 5 years and conducting further analysis on the data. There has
been a year-on-year growth of the total assets over the 5-year period, apart
for a slight dip in the year 2021 owing to the disruptions in operations due
to natural causes. This trend has been prominent for most items in the
balance sheet of the company. The capital work-in-progress has been
fluctuating over the years. The current tax assets has increased vastly over
the years indicating huge payments of advance taxes or tax benefits
receivables by the company.
The cash and cash equivalents is showing an increasing trend whereas the
bank balance is on a decline indicating the company’s focus is largely on
cash transactions rather than bank. The loans provided by the company
has also been on an increasing trend.
The reserves of the company have been growing over the years and this is
shown in the Other Equity section of the balance sheet. The total non-
current liabilities of the company have also been increasing over the years,
with drastic increase in the years 2020 and 2021, mainly owing to the
sudden increase in the borrowings for 2020 and lease liabilities for 2021.
The total current liabilities and the total liabilities overall of the company
has been following a similar trend as that of the total assets, increasing over
the years but dipping slightly for the year 2021.
 RATIO ANALYSIS
RETURN ON INVESTMENT – To assess financial rewards to the
suppliers of equity and debt financing.

RETURN ON ASSETS
This is an indicator of how profitable a company is in relative to its assets.
It gives an idea as to how efficient a company's management is at using
its assets to generate earnings. For Colgate, the return on assets is 36% for
the year 2021 which indicates efficient utilization of the assets by the
management.

RETURN ON COMMON EQUITY

This refers to the return that common equity investors receive on their
investment. As for Colgate, the common equity investors receive an average
of 90% of the total equity. A high ROCE such as this indicated that the
company is generating high profits from its equity investments.
OPERATING PERFORMANCE – To evaluate profit margins from
operating activities.

GROSS PROFIT MARGIN

This ratio is an indicator of company’s financial health. It tells how much
gross profit of revenue a company is earning. The gross profit margin of
Ultratech Cementhas been quite stable over the years at 65% of the total
sales. The ratio of the company is good which means the management is
efficient.

OPERATING PROFIT MARGIN

This measures how much profit a company makes on sales after providing
for the variable costs of production, wages and raw materials. In effect, it is
the ratio of operating income by sales. The operating profit margin of
Ultratech Cementhas been consistent at 28-30% of sales over the years. The
ratio is good which means that the company is efficient in its operations
and is good at turning sales into profits.

NET PROFIT MARGIN

This is an indicator to how much profit is generated by the company from
the total revenue earned. This is one of the most important indicators of the
financial health of a company. The net profit margin earned by Ultratech
Cementin 2016 was 13% of the total revenue which has been consistently
increasing over the years and stood at 21% in the year 2021. This means
that the company's management is generating enough profit from its sales
and costs involved in operating and overheads are being contained.
 Profitablity Ratio
100.00%

80.00%

60.00% Gross Profit Margin

Net Profit Margin
40.00% Operating Profit Margin

20.00%

0.00%
1 2 3 4 5

-20.00%

ASSET UTILIZATION – To assess effectiveness and intensity of assets in

generating the turnover.

INVENTORY TURNOVER
This ratio shows how many times a company has sold and replaced
inventory during a given period. Ultratech Cementhas replaced the
inventory by 5.25% in 2021. The turnover ratio of Ultratech Cement is
high which implies strong sales by the company.

WORKING CAPITAL TURNOVER

This measures how well a company is utilizing its working capital to
support the given level of sales. As for 2021, the working capital turnover is
44.17 which is quite high implying that the management has been
extremely efficient in utilizing the firm’s short-term assets and liabilities to
support its sales.

TOTAL ASSETS TURNOVER

This measures the value of a company’s revenue in relation to the value of
its assets. The asset turnover of Ultratech Cement for the year 2017 was
0.54 and has increases to 0.67 for the year 2021. This is considered a good
turnover which implies the assets of the company are being utilized
efficiently to generate sales.

Turnover Ratio
25.00

20.00
Receivalble Turnover
Avg collection period
15.00 Inventory turnover
Total asset turnover
10.00 Net working capital

5.00

0.00
1 2 3 4 5

CAPITAL STRUCTURE AND SOLVENCY RATIOS – To assess the

ability to meet long-term obligations.

DEBT-TO-EQUITY
This ratio shows the proportions of equity and debt that a company is using
to finance its assets and it signals the extent to which shareholders’ equity
can fulfil obligations to creditors, in the event of the decline of a business.
For Ultratech, the debt-to-equity ratio was 1.67 % for 2017 and decreased
over the years to 1.23 for 2021. This suggests that the company has been
getting more of its funding through equity which has a lesser risk as
compared to borrowings.
 Solavncy Ratio
0.60

0.50

0.40
Debt to equity
Debt to Total assets
0.30

0.20

0.10

0.00
1 2 3 4 5

VALUATION – To estimate the intrinsic value of the company.

PRICE-TO-EARNINGS
This measures the current share price of the company in relation to the
earnings per share. The ratio indicates what investors are willing to pay for
every dollar of future earnings. For the year 2021, the price-to-earnings of
Ultratech Cement was ₹38.06 which is quite low as compared to last year.

DIVIDEND PAYOUT RATE

The dividend payout rate gives the investors an idea as to how much money
does the company return to its investors and how much of it does the
company keep with itself. The dividend payout rate of Ultratech Cement
for the year 2017 was 0.471 which has rapidly increased over the years to
0.98 as of the year 2021. This is quite high which might prove unsustainable
to the company resulting in a rate cut.

LIQUIDITY RATIOS – To evaluate the ability to meet short-term

obligations.

CURRENT RATIO
This ratio measures a company’s a company’s ability to pay short-term
obligations or those due within one year, with respect to its available assets
and pending liabilities. The current ratio for Ultratech Cementhas been
marginally over 1 .This suggests that the company is not facing liquidity
troubles though not to an extremity that could affect its operations.

ACID – TEST RATIO

This ratio indicates a company’s capacity to pay its current liabilities
without needing to sell its inventory. It compares a company's most short-
term assets to its most short-term liabilities to see if a company has enough
cash to pay its immediate liabilities, such as short-term debt. The acid-test
ratio of Ultratech Cementis below 1 for all the years accept 2021, which
suggests the heavy dependant of the company on its inventories.

Liquidity Ratios
6.00

5.00

4.00 Current Ratio

Quick ratio / Acid test
3.00 Cash Ratio

2.00

1.00

0.00
1 2 3 4 5