CMR INSTITUTE OF TECHNOLOGY

DEPARTMENT OF MBA

Project work:
A STUDY ON FINANCIAL PERFORMANCE OF
ULTRATECH CEMENT LTD

MOHAMMED HUSSAIN
22R01E0024
SECTION: A
 Abstract
Finance encompasses the complex of transactions between borrowers, lenders,
and investors, operating at multiple scales from local enterprises to global
markets. This complexity involves various elements such as markets,
institutions, and regulations. An overview of finance provides a foundational
understanding of how India's financial system operates holistically. Within
companies, the finance division oversees money management. While financial
statements outline activities, a deeper understanding of efficiency and
performance emerges through financial analysis. This examination, focusing on
Ultra Tech Cements Limited, aims to assess the firm's financial health using
diverse methodologies and approaches. Ratios serve as pivotal instruments in
this analysis, offering insights into profitability and overall performance.
The cement sector stands as one of the most advanced industries within the
nation, playing a pivotal role in encourage the growth of factory-based sectors,
construction something new or difficult, and agricultural development. This
research employs Ratio Analysis as a methodology to delve into profitability.
Within the context of the Indian cement industry, the primary aims encompass
analysing both regional and state-level flows of cement to project production
demand and installed capacity. Projections indicate that demand is poised to
surpass production levels. Furthermore, the study endeavors to assess the
financial robustness of the Indian cement industry, focusing on select
companies within the sample. Competitive analysis of these sample firms is
conducted based on data extracted from publicly available company sources.
The process of Financial Analysis may include the various steps like ratio
analysis, trend analysis, comparative statement analysis, schedule of changing
of working capital, common size percentages, fund analysis, etc. Financial
statement analysis refers to an Project viability assessment comprises a toolkit
enabling project managers or any relevant decision-makers to ascertain the
worthiness of continuing project execution, particularly when the odds are
stacked against its success and also help in the stability and profitability of a
business or a project. The main objective of any financial analysis or financial
statement analysis will be Assessing Business Excellence presents a strategic
framework for business excellence, Judging Creditworthiness, forecasting bond
ratings, and assessing market risk.
 Introduction:
Finance involves the transfer of funds among borrowers, lenders, and investors,
operating across diverse levels from local enterprises to global and national
arenas. This complexity involves markets, institutions, etc. An overview of
finance provides a fundamental grasp of India's financial system, encompassing
capital acquisition, financial oversight, and budgeting for future expenses.
Effective management of business finance is crucial for goal attainment,
profitability, and operational efficiency. Finance is integral to business success,
with its management determining the outcome. It involves acquiring funds or
capital for expenditures and allocating financial resources, such as credit, loans,
and invested capital, to sectors of the economy yielding optimal returns.
Ultra Tech Cement Limited is an Indian cement firm headquartered in Mumbai.
It operates as a subsidiary of the Indian multinational conglomerate "Aditya
Birla Groups." Ultra Tech stands as the leading producer of grey cement, ready
mix concrete, and white cement within India, boasting an installed capacity of
116.75 million metric tons per annum. Remarkably, it holds the distinction of
being the sole company globally with a capacity exceeding 100 million metric
tons within a single nation, outside of China. The company operates 23
integrated plants, 1 clinkeristion plant, 26 grinding units, and 7 bulk terminals.
Originating from modest origins in 1914, when the first cement plant
commenced operations with a production capacity of a few metric tons per year,
the Indian cement industry has undergone substantial advancements in
technology, quality enhancement, and production capacity.
Finance is considered the foundation of any nation's economic progress. In
contemporary times, economic finance denotes supplying funds precisely when
needed. Currently, companies convey financial data to stakeholders via
financial statements and reports. While financial statements offer a glimpse into
activities undertaken, thorough financial analysis and performance evaluation
unveil the efficacy of operations. Therefore, this investigation undertook an
examination to understand the dynamics of Ultra Tech Cement Company and to
discern its progression, emphasizing the pivotal role of financial performance in
fostering company growth.
The financial performance serves as a crucial indicator of company growth,
influenced by various factors such as expenses, income, and profit margins.
Operational and financial efficiency, tied to cost and revenue, can significantly
impact financial performance. Cement sectors play a vital role in national
economies, particularly in the Southern region, where Indian cement industries
have shown consistent expansion. By the end of the Seventh Plan, India not
only achieved self-sufficiency but also commenced cement exports, solidifying
its position as an advanced industry. These elements ultimately affect
profitability adversely. Thus, the current research aims to furnish effective
recommendations to cement industry management and other stakeholders.
Finance is seen as the cornerstone of a nation's economic advancement. In the
contemporary era, economic finance refers to providing funds promptly when
needed. Currently, companies disseminate financial data to stakeholders via
financial statements and reports. While financial statements merely illustrate the
activities conducted, financial analysis and performance unveil the thorough
efficiency of functions. Consequently, this investigation undertook an analysis
to comprehend Ultra Tech Cement Company's status and to pinpoint the
company's expansion, while elucidating the critical role of financial
performance in its growth.