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UltraTech Cement restricts FY21 capex to Rs 1,000 crore amid COVID-19 disruptions

In a regulatory filing, the Aditya Birla Group firm said the capital and financial resources of the company remain entirely protected in spite of the adverse impact on its sales during the first two phases of the lockdown and the liquidity position remains "adequately covered".

June 05, 2020 / 12:55 PM IST
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UltraTech Cement has restricted its capital expenditure plans for this fiscal to Rs 1,000 crore due to COVID-19 disruptions, as conserving its cash position has become the "biggest motto" for the company this year.

In a regulatory filing, the Aditya Birla Group firm said the capital and financial resources of the company remain entirely protected in spite of the adverse impact on its sales during the first two phases of the lockdown and the liquidity position remains "adequately covered".

"Due to COVID-19, capital expenditure (CAPEX) plans for the current financial year have been restricted to an amount of around Rs 1,000 crore,” said UltraTech in a disclosure of material impact of COVID–19 pandemic.

It is continuously monitoring any material changes in future economic conditions.

"The company's capital and financial resources remain entirely protected in spite of the adverse impact on its sales during the first two phases of the lockdown. The company's liquidity position remains adequately covered.

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"During the lockdown period also, the company has been servicing its debt obligations as per schedule and on due dates," it said, adding it doesn't not require to avail the moratorium extended by banks as per the Reserve Bank of India guidelines.

"Conserving cash is the biggest motto for the company this year. The company is carrying sufficient inventories across all its plants to meet the production requirements," it said.

The company further noted that work on the 2.2 million ton Cuttack grinding unit, in Odisha, which was scheduled for commissioning in March, 2021 has been slowed down.

"Brownfield capacity expansion work at the West Bengal and Bihar grinding units and Bicharpur coal block (in Madhya Pradesh) is coming to an end and should get commissioned by March, 2021," it added.

During the lockdown, UltraTech has stopped its operations across locations in line with the government directives. "This had an adverse impact on revenues, as expected," the company said.

On impact on capital and financial resources, UltraTech said it "expects to recover the carrying amount of all its assets including inventory, receivables and loans in the ordinary course of business based on information available on current economic conditions".

UltraTech Cement had reported a consolidated net profit of Rs 3,239.39 crore in the fourth quarter ended March, 2020. Its revenue from operation was Rs 10,745.62 crore during the quarter.
PTI
first published: Jun 5, 2020 12:35 pm

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