“COMPARATIVE FINANCIAL STATEMENT ANALYSIS OF
ULTRATECH CEMENT LIMITED”
By
Rahul Saha
ID No. - 23IUT0160098
Program – MBA 1ST Semester
Subject Code – INM571
Subject – Accounts for Manager
Submitted To: Mr. Tamladipta Sen
ICFAI UNIVERSITY TRIPURA
A Report On
“COMPARATIVE FINANCIAL STATEMENT ANALYSIS OF
ULTRATECH CEMENT LIMITED”
By
Rahul Saha
ID No. - 23IUT0160098
Program – MBA 1ST Semester
Subject – Accounts for Manager
Subject Code – INM571
A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF MBA PROGRAM; BATCH 2023-25.
ICFAI UNIVERSITY TRIPURA
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ACKNOWLEDGEMENTS
Every assignment big or small is successful largely due to the effort of a number of
wonderful people who have always given their valuable advice or lent a helping hand.
We sincerely appreciate the inspiration; support and guidance of all those people who have
been instrumental in making this project a success.
We would like to express our special thanks of gratitude to our teacher Mr. Tamladipta Sen,
who gave us the golden opportunity to do this wonderful assignment on a study on the
"Comparative Financial Statement Analysis of UltraTech Cement Ltd” which also helped us
in doing a lot of research and we came to know about so many new things. We are really
thankful to him.
We would also like to thank the teachers of IUT who help us in our assignment. Last but not
the least we would also thank all our friends and family members for their support and love
given by them without which the completion of this research was not possible.
Thank You All.
3
TABLE OF CONTENTS
SL. NO PARTICULARS PAGE NO
1 Introduction 5
2 Objective 6
3 Company Profile 7-8
4 Methodology 9
5 Facts &
Observations
1) Profit & Loss 10 – 12
A/C
2) Balance Sheet 13 – 15
6 Conclusion 16
7 Conceptual 17
Relevance
8 References 18
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INTRODUCTION
Comparative financial statement analysis is a crucial tool for evaluating the financial
performance and stability of a company over time. Ultratech Cement, one of the leading
cement manufacturers in India. Ultratech Cement is a subsidiary of the Aditya Birla Group
and is known for its strong presence in the construction and infrastructure industry. By
comparing its financial statements over multiple periods, we can gain valuable insights into
its financial health and performance trends.
Ultratech Cement's financial statements typically include the income statement, balance
sheet, and cash flow statement. These statements provide a comprehensive overview of the
company's financial activities, including its revenues, expenses, assets, liabilities, and cash
flows. Comparative analysis involves examining these statements for multiple periods, such
as year-over-year or quarter-over-quarter, to identify trends, strengths, weaknesses, and
potential areas for improvement.
By conducting a comparative financial statement analysis of Ultratech Cement, stakeholders
can make informed investment decisions, lenders can assess creditworthiness, and the
company's management can identify areas for strategic improvement. This analysis allows for
a comprehensive evaluation of the company's financial performance and assists in making
data-driven decisions for the future.
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OBJECTIVE
The objective of conducting a comparative financial statement analysis of Ultratech Cement,
or any company, is to evaluate its financial performance and position over time, typically by
comparing multiple years or periods. This analysis helps stakeholders, such as investors,
creditors, and management, make informed decisions and understand the company's financial
health.
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COMPANY PROFILE
UltraTech Cement Limited is the cement flagship company of the Aditya Birla Group. It is
headquartered in Mumbai and has a significant presence in the global cement industry.
Ultratech Cement was founded in 1983. A USD 7.9 billion building solutions powerhouse,
UltraTech is the largest manufacturer of grey cement and ready-mix concrete (RMC) in India.
It is also one of the leading players in the white cement segment 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.
UltraTech has a consolidated capacity of 137.85 million Tonnes Per Annum (MTPA) of grey
cement. UltraTech has 23 integrated manufacturing units, 29 grinding units, one
Clinkerisation unit and 8 Bulk Packaging Terminals. In the white cement segment, UltraTech
goes to market under the brand name of Birla White. It has one White Cement unit and three
Wall Care putty unit, with a current capacity of 1.98 MTPA. With 230+ Ready Mix Concrete
(RMC) plants in 100+ cities, UltraTech is the largest manufacturer of concrete in India. It also
has a slew of speciality concretes that meet specific needs of discerning customers. The
Building Products business is an innovation hub that offers an array of scientifically
engineered products to cater to new-age constructions.
UltraTech pioneered the UltraTech Building Solutions (UBS) concept to provide individual
home builders with a one-stop-shop solution for building their homes. This is the first pan-
India multi-category retail chain catering to the needs of individual home builders (IHBs).
The purpose of this initiative is to engage with home builders at all stages of the construction
cycle, empower them with quality construction products and services, and assist in the
completion of their dream homes.
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UltraTech is a founding member of Global Cement and Concrete Association (GCCA). It is a
signatory to the GCCA Climate Ambition 2050 and has committed to the Net Zero Concrete
Roadmap announced by GCCA. UltraTech is focused on accelerating the decarbonisation of
its operations. It has adopted new age tools like the Science Based Targets Initiative (SBTi)
and Internal Carbon Price as well as set ambitious environmental targets through both EP100
and RE100. UltraTech is the first company in India and the second company in Asia to issue
dollar-based sustainability linked bonds.
UltraTech works to actively contribute to the social and economic development of the
communities in which it operates in. The Company’s social initiatives focus on education,
healthcare, sustainable livelihoods, community infrastructure and social causes. UltraTech
reaches out to more than 1.6 million beneficiaries in over 507 villages in 16 states across
India.
Their Vision
To be the leader in Building Solutions
Their Mission
To deliver superior value to stakeholders on the four pillars of
Sustainability Innovation
Customer Centricity Team Empowerment
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METHODOLOGY
Comparative financial statement analysis involves comparing the financial statements of a
company across multiple periods to assess its financial performance, stability, and growth. In
the case of Ultratech Cement or any other company, we follow these steps to conduct a
comprehensive comparative financial statement analysis.
SECONDARY DATA
Gather Financial Statements:
Collected the annual reports or financial statements of Ultratech Cement for March
2021-22 and March 2022-23.
Data Analysis:
Employ statistical tools and software to analyse data.
Summarize Findings:
Prepared a summary of the findings, highlighting key takeaways and
recommendations.
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FACTS AND OBSERVATIONS
PROFIT & LOSS ACCOUNT OF ULTRATECH CEMENT
2022-23 (in 2021-22 (in Absolute Relative
PARTICULARS
Cr.) Cr.) Change Change
INCOME
REVENUE FROM OPERATIONS [GROSS] 60,462.60 49,729.38 10,733.22 21.58%
Less: Excise/Sevice Tax/Other Levies 0.00 0.00 0.00 -
REVENUE FROM OPERATIONS [NET] 60,462.60 49,729.38 10,733.22 21.58%
TOTAL OPERATING REVENUES 61,326.50 50,663.49 10,663.01 21.05%
Other Income 689.43 611.80 77.63 12.69%
TOTAL REVENUE 62,015.93 51,275.29 10,740.64 20.95%
EXPENSES
Cost of Materials Consumed 8,504.11 6,459.77 2,044.34 31.65%
Purchase of Stock-In Trade 3,020.70 2,458.19 562.51 22.88%
Operating And Direct Expenses 0.00 0.00 0.00 -
Changes In Inventories of FG,WIP And Stock-In
(490.37) (358.37) (132.00) 36.83%
Trade
Employee Benefit Expenses 2,561.60 2,359.08 202.52 8.58%
Finance Costs 755.00 798.37 (43.37) -5.43%
Depreciation And Amortisation Expenses 2,619.24 2,456.76 162.48 6.61%
Other Expenses 37,799.26 28,808.40 8,990.86 31.21%
TOTAL EXPENSES 54,769.56 42,982.20 11,787.36 27.42%
PROFIT/LOSS BEFORE EXCEPTIONAL,
7,246.37 8,293.09 (1,046.72) -12.62%
EXTRAORDINARY ITEMS AND TAX
Exceptional Items 0.00 0.00 0.00 -
PROFIT/LOSS BEFORE TAX 7,246.37 8,293.09 (1,046.72) -12.62%
TAX EXPENSES-CONTINUED OPERATIONS
Current Tax 2,046.00 1,518.68 527.32 34.72%
Less: MAT Credit Entitlement 0.00 0.00 0.00 -
Deferred Tax 283.49 13.02 270.47 2077.34%
Tax For Earlier Years 0.00 -305.15 305.15 -
TOTAL TAX EXPENSES 2,329.49 1,226.55 1,102.94 89.92%
PROFIT/LOSS FOR THE PERIOD 4,916.88 7,066.54 (2,149.66) -30.42%
Interpretation of profit and loss account.
Income:
The Profit & Loss Account for UltraTech Cement for the financial years 2022-23 and 2021-
22. The summary of the company's revenues and expenses, ultimately leading to its profit or
loss for the specified periods.
Here's an interpretation of the data:
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Revenue from Operations [Gross]: In 2022-23, the company earned ₹60,462.60
crores from its primary business activities, showing a significant increase of
₹10,733.22 crores (21.58%) compared to the previous year.
Revenue from Operations [Net]: This is the same as Gross Revenue because there are
no excise, service tax, or other levies.
Other Income: The company earned ₹689.43 crores from sources other than its core
operations, which increased by ₹77.63 crores (12.69%) compared to the previous
year.
Total Revenue: The total income for 2022-23 was ₹62,015.93 crores, which increased
by ₹10,740.64 crores (20.95%) compared to the previous year.
Expenses:
Cost of Materials Consumed: The cost of raw materials used in production was
₹8,504.11 crores, which increased by ₹2,044.34 crores (31.65%).
Purchase of Stock-In Trade: Expenses related to purchasing stock-in-trade were
₹3,020.70 crores, increasing by ₹562.51 crores (22.88%).
Changes in Inventories of FG, WIP, and Stock-In Trade: There was an increase in
inventory of ₹490.37 crores compared to a decrease of ₹358.37 crores in the previous
year.
Employee Benefit Expenses: Employee-related expenses were ₹2,561.60 crores,
increasing by ₹202.52 crores (8.58%).
Finance Costs: Finance costs decreased by ₹43.37 crores (-5.43%) to ₹755.00 crores.
Depreciation and Amortization Expenses: The company incurred ₹2,619.24 crores in
depreciation and amortization expenses, which increased by ₹162.48 crores (6.61%).
Other Expenses: Various other expenses amounted to ₹37,799.26 crores, which
increased significantly by ₹8,990.86 crores (31.21%).
Profit/Loss:
Profit/Loss Before Exceptional, Extraordinary Items, and Tax: The company's profit
before exceptional items and tax for 2022-23 was ₹7,246.37 crores, which decreased
by ₹1,046.72 crores (-12.62%) compared to the previous year.
Exceptional Items: There were no exceptional items in either year.
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Profit/Loss Before Tax: The company's profit before tax for 2022-23 was ₹7,246.37
crores, representing a decrease of ₹1,046.72 crores (-12.62%) compared to the
previous year.
Tax Expenses:
Current Tax: The company paid ₹2,046.00 crores in current taxes, which increased by
₹527.32 crores (34.72%).
Deferred Tax: The company had a deferred tax expense of ₹283.49 crores,
significantly higher than the previous year's ₹13.02 crores.
Tax For Earlier Years: There was a tax credit of ₹305.15 crores in the previous year.
Total Tax Expenses: The total tax expenses for 2022-23 were ₹2,329.49 crores, which
increased by ₹1,102.94 crores (89.92%) compared to the previous year.
Profit/Loss for The Period:
The company's profit for the period in 2022-23 was ₹4,916.88 crores, showing a significant
decrease of ₹2,149.66 crores (-30.42%) compared to the previous year.
In summary, UltraTech Cement's revenue from operations, other income, and total revenue
increased in 2022-23. However, the company also experienced significant increases in
expenses, particularly in cost of materials consumed, purchase of stock-in-trade, and other
expenses. This led to a lower profit for the period in 2022-23 compared to the previous year.
Additionally, the company had higher tax expenses, particularly in current and deferred taxes,
contributing to the decrease in profit.
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BALANCE SHEET ULTRATECH CEMENT
2022-23 (in 2021-22 (in Absolute Relative
PARTICULARS
Cr.) Cr.) Change Change
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 288.69 288.67 0.02 0.01%
TOTAL SHARE CAPITAL 288.69 288.67 0.02 0.01%
Reserves and Surplus 52,567.99 48,932.26 3,635.73 7.43%
TOTAL RESERVES AND SURPLUS 52,567.99 48,932.26 3,635.73 7.43%
TOTAL SHAREHOLDERS FUNDS 52,936.86 49,270.64 3,666.22 7.44%
NON-CURRENT LIABILITIES
Long Term Borrowings 4534.67 5303.00 -768.33 -
Deferred Tax Liabilities [Net] 5,475.78 5,229.92 245.86 4.70%
Other Long Term Liabilities 1,109.36 1,099.74 9.62 0.87%
Long Term Provisions 596.20 585.84 10.36 -
TOTAL NON-CURRENT LIABILITIES 11,716.01 12,218.50 (502.49) -4.11%
CURRENT LIABILITIES
Short Term Borrowings 4,215.67 4,588.11 (372.44) -8.12%
Trade Payables 6,586.99 5,343.26 1,243.73 23.28%
Other Current Liabilities 11,263.78 9,009.57 2,254.21 25.02%
Short Term Provisions 181.68 231.65 -49.97 -
TOTAL CURRENT LIABILITIES 22,248.12 19,172.59 3,075.53 16.04%
TOTAL CAPITAL AND LIABILITIES 86,900.99 80,661.73 6,239.26 7.74%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 43,422.88 39,555.51 3,867.37 9.78%
Intangible Assets 6,019.26 6,021.40 (2.14) -0.04%
Capital Work-In-Progress 3,807.17 4,619.12 (811.95) -17.58%
Other Assets 0.00 0.00 0.00 -
FIXED ASSETS 53,254.79 50,203.44 3,051.35 6.08%
Non-Current Investments 7,055.78 6,880.97 174.81 2.54%
Deferred Tax Assets [Net] 0.00 0.00 0.00 -
Long Term Loans And Advances 9.22 9.59 (0.37) -3.86%
Other Non-Current Assets 4,716.56 4,575.94 140.62 3.07%
TOTAL NON-CURRENT ASSETS 65,036.35 61,669.94 3,366.41 5.46%
CURRENT ASSETS
Current Investments 5803.46 4843.54 959.92 -
Inventories 6,084.24 5,162.54 921.70 17.85%
Trade Receivables 3,242.17 2,706.82 535.35 19.78%
Cash And Cash Equivalents 1,017.11 259.86 757.25 291.41%
Short Term Loans And Advances 2,536.32 2,573.35 (37.03) -1.44%
Other Current Assets 3,181.34 3,445.68 (264.34) -7.67%
TOTAL CURRENT ASSETS 21,864.64 18,991.79 2,872.85 15.13%
TOTAL ASSETS 86,900.99 80,661.73 6,239.26 7.74%
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Interpretation of Balance Sheet:
Balance sheet for UltraTech Cement for two consecutive years, 2022-23 and 2021-22. The
balance sheet is a financial statement that provides an overview of a company's financial
position, showing its assets, liabilities, and equity at a specific point in time.
Equities and Liabilities:
1. Shareholder's Funds: This section represents the company's equity and includes the
Equity Share Capital and Reserves and Surplus.
Equity Share Capital: In 2022-23, the equity share capital is 288.69 crores, a slight
increase from 288.67 crores in 2021-22.
Reserves and Surplus: The company's reserves and surplus have increased from
48,932.26 crores in 2021-22 to 52,567.99 crores in 2022-23, showing a significant
relative change of 7.43%.
2. Non-Current Liabilities: These are long-term obligations that are not expected to be
settled within one year.
Long Term Borrowings: The company's long-term borrowings have decreased from
5,303.00 crores to 4,534.67 crores.
Deferred Tax Liabilities: There's a 4.70% relative increase in deferred tax liabilities.
Other Long-Term Liabilities: A small increase in other long-term liabilities.
Long Term Provisions: Slight increase in long-term provisions.
3. Current Liabilities: These are short-term obligations expected to be settled within
one year.
Short Term Borrowings: A decrease in short-term borrowings by 8.12%.
Trade Payables: Trade payables have increased by 23.28%.
Other Current Liabilities: A significant increase of 25.02% in other current liabilities.
Short Term Provisions: Slight decrease in short-term provisions.
Total Capital and Liabilities:
The total capital and liabilities have increased from 80,661.73 crores in 2021-22 to 86,900.99
crores in 2022-23, showing a 7.74% relative change.
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Assets:
1. Non-Current Assets: These are long-term assets.
Tangible Assets: Significant increase in tangible assets by 9.78%.
Intangible Assets: A small decrease in intangible assets.
Capital Work-In-Progress: A significant decrease in work-in-progress.
Non-Current Investments: An increase of 2.54% in non-current investments.
Other Non-Current Assets: A 3.07% relative increase in other non-current assets.
2. Current Assets: These are short-term assets.
Current Investments: An increase in current investments.
Inventories: Significant increase in inventories by 17.85%.
Trade Receivables: A 19.78% relative increase in trade receivables.
Cash And Cash Equivalents: A substantial increase of 291.41% in cash and cash
equivalents.
Short Term Loans And Advances: A slight decrease in short-term loans and advances.
Other Current Assets: A decrease in other current assets.
Total Assets:
The total assets have increased from 80,661.73 crores in 2021-22 to 86,900.99 crores in
2022-23, showing a 7.74% relative change.
In summary, UltraTech Cement has experienced an increase in both its total liabilities and
total assets in 2022-23 compared to the previous year. The significant increase in reserves and
surplus and the tangible assets is noteworthy. Additionally, there have been changes in
various current and non-current assets and liabilities, which can have important implications
for the company's financial health and operations.
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CONCLUSION
In conclusion, UltraTech Cement's financial data for the fiscal years 2022-23 and 2021-22
reveals a mixed performance. The company witnessed growth in its revenue from operations
and other income, contributing to a higher total revenue. However, this increase was offset by
significant rises in expenses, particularly in the cost of materials consumed and other
miscellaneous expenses, resulting in a notable decrease in the company's profit for the period.
Additionally, the substantial increase in tax expenses, especially in current and deferred taxes,
further impacted the company's profitability.
On the balance sheet side, there was an overall increase in both assets and liabilities. Notable
changes include a significant relative increase in reserves and surplus and tangible assets.
Various current and non-current assets and liabilities also saw changes, which can influence
the company's financial stability and operations.
In summary, UltraTech Cement has experienced financial fluctuations in the mentioned
periods, with a strong focus on revenue growth, but challenges in managing expenses and
taxes. The balance sheet changes suggest strategic decisions in managing the company's
capital structure and investments. The company's performance will continue to be influenced
by these financial dynamics and its ability to adapt to changing market conditions.
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CONCEPTUAL RELEVANCE
Comparative financial statement analysis is like looking at a company's report card over
different time periods. In this case, we're focusing on UltraTech Cement, a big cement
company.
Imagine you have your school report cards from different years – one from last year and one
from this year. By comparing them, you can see if you're doing better or worse in subjects
like math, science, or English.
In a similar way, when we do a comparative financial statement analysis of UltraTech
Cement, we're comparing their financial report cards from different years, usually from one
year to the next. This helps us see if the company is doing better or worse in important
financial areas like making money, managing debts, and growing the business.
We look at numbers like sales, profits, and how much the company owes to others. If
UltraTech Cement's sales are higher this year than last year and their profits are up, that's
good news. But if they're taking on a lot of debt, it might be a concern.
So, the conceptual relevance of this analysis is about understanding how well UltraTech
Cement is performing by comparing their financial health in different years. It's like giving
them a financial check-up to see if they're getting stronger or facing challenges. This
information can help investors and stakeholders make informed decisions about the
company's future.
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REFERENCE
Internet:
https://www.moneycontrol.com/financials/ultratechcement/profit-lossVI/UTC01
https://www.moneycontrol.com/financials/ultratechcement/balance-sheetVI/UTC01
https://www.ultratechcement.com/about-us/overview
https://en.wikipedia.org/wiki/UltraTech_Cement
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