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I would like to express my profound gratitude and grateful thanks to
MrR!
(DGM- D) and MrR  (RD for giving me the
opportunity undertake this research project in   cc  R

I am really thankful to MrR  
% (VGM orporate
inance and
Vccounts) for making all kinds of arrangements to carry the project successfully
and for guiding and helping me to solve all kinds of problems regarding the project
workR is systematic way of working and in comparable guidance has inspired the
pace of the project to a great extentR

I would also like to '! c
for assigning me a project of such a great
learning experienceR 

I would like to thank all the employees of   cc  who have
directly or indirectly helped me with their moral support for the completion of my
projectR  

cc 
c! 
 
(c )c 
c 

To provide an overview of Indian ement IndustryR
To study about some of the major players in Indian ement IndustryR
To compare the financial ratios of the major players and interpreting themR
To identify the growth drivers of the Indian cement industryR  

c 
!  " 

The whole study can be termed as a desk researchR ence there is no field work
and collection of primary data for this research except for secondary information
obtained by the medium of internet, journals and magazinesR 
c  "  

nly secondary data was collected from the internet, company websites,
magazines and various articlesR owever the main source of information is Vnnual
report provided by the companiesR   

c " 

The companies were chosen based on convenience and availability of secondary
dataR

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" 

Equity Research refers to the study of the performance of the economy as a whole,
the industry and various companies and analyzing the sameR It enables to predict
the future performance of a particular stock based on its past performance, the
current status of the internal as well as the external environmentR

EQUITY RESEVR  can be done by two methods:  

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ere we look at balance sheet, income statement etcR to determine a companyµs
valueR In financial terms it is used to measure a companyµs intrinsic valueR It takes
a long term approach to analyze the market as compared to technical analysisR It
often looks at data over a number of yearsR 
c 
 "

Technical traders study the price movements of the particular company's stock in
the marketR Technical analysts strongly believe that the price movements follow a
trend and by identifying the trend, one can accurately predict the price that might
occur in futureR Technical analysts use financial tools with software supportR 
c  c  "
The various steps in fundamental analysis are listed belowR
undamental Vnalysis
is a conservative and non-speculative approach based on the ʊ
undamental
analysis of
The Economy
The Industry
The ompany  

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 " 

*+ ,-.+' '//0+, / ,/0 12 +2 3/'.+ 450+ 6**6,
4',-6+//½0+'70,0'8!-90'0+R The industry has since been growing
at a steady pace, but in the initial stage, particularly during the period before
Independence, the growth had been very slowR Since indigenous production was
not sufficient to meet the entire domestic demand, the Government had to control
its price and distribution statutorilyR arge quantities of cement had to be imported
for meeting the deficitR The industry was partially decontrolled in 1982 and this
gave impetus to its pace of growthR Installed capacity increased to more than
double from 27 million tons in 1980-81to 2 million tons in 1989-90R

The cement industry responded positively to liberalization policy and the
Government decontrolled the industry fully on 1st March 1989R
rom 1991
onwards cement industry got the status of a priority industry in schedule III of the
industry policy statement, which made it eligible for automatic approval for
foreign investment up to 1% and also for technical collaboration on normal terms
of payment of royaltyR
Vfter the globalization and liberalization of Indian economy, the cement industry
has been growing rapidly at an average rate of 9 per centR The country is now the
second largest producer of cement in the world next only to hinaR Vdditionally, in
the last two decades, the industry has undergone rapid technological up gradation
and growth, and now, some of the cement plants in India are comparable to the
world¶s best operating plants in all respectsR

Till a few years ago India was importing cement from other countries, as the
production could not meet the demand for the whole countryR ow the tables have
turned as India has started exporting large quantities of cement and clinker to
Bangladesh, epal, Sri anka, Maldives, Mauritius, Vfrica, Seychelles, Burma,
UVE, and Singapore etcR

India is today the second largest producer of cement in worldR9 % is consumed
domestically and only % is exportedR Demand is growing at more than 10 % per
annumR More than 90 % of production comes from large cement plantsR There are a
total of 14 large and more than !0 small cement manufacturing units in the
countryR
More than 80% of the cement manufacturing units use modern environment
friendly ³dry´ processR

In the cement industry there are two sectors ± one consisting of large plants and the
other consisting of mini cement plantsR V factory with an installed capacity
exceeding 2,97,000 tones per annum (900 tons per day) is a large plant and with
capacity up to and including 2, 97,000 tons is a mini cement plantR

Since mini cement plants are scattered all over the country with a number of
associations representing different types of processes, sizes etcR and some of them
are even tiny units, it has not been possible to obtain correct data of this sectorR

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The Indian cement Industry not only ranks second in the production of cement in
the world but also produces quality cement, which meets global standardsR 
owever, the industry faces a number of constraints in terms of high cost of
power, high railway tariff; high incidence of state and central levies and duties;
lack of private and public investment in infrastructure projects; poor quality coal
and inadequate growth of related infrastructure like sea and rail transport, ports and
bulk terminalsR In order to utilize excess capacity available with the cement
industry, the government has identified the following thrust areas for increasing
demand for cement:

‡Y ousing development programmers and Promotion of concrete highways
and roadsR
‡Y Use of ready-mix concrete in large infrastructure projectsR
‡Y onstruction of concrete roads in rural areas under Prime Ministers Gram
Sadak YojanaR 

!c ) " 

Some of the provisions in the budget that could have a direct and indirect bearing
on the cement sector are as follows
‡Y In order to provide incremental lending to the infrastructure sector, Indian
Infrastructure
inance ompany (II
) will evolve a takeout financing
scheme in consultation with banksR II
 will refinance 0% of commercial
bank loans for PPP projects in critical sectors over the next 1 to 18 monthsR
II
 and Banks are now in a position to support projects involving total
investment of Rs 100,000 croreR
‡Y Vllocation under awaharlal ehru ational Urban Renewal Mission
( URM) was stepped up by 87% to Rs 12887 crore in 2009U10 compared
to 2008U09R
‡Y Vllocation for housing and provision of basic amenities to urban poor
enhanced to Rs !,97! crore in 2009U10R This includes provision for Rajiv
Vwas Yojana (RVY), a new scheme announcedR
‡Y Vllocation for Bharat irman increased 4% in 2009U10R
‡Y Vllocations under Pradhan Mantri Gram Sadak Yojana (PMGSY) increased
9% over BRER 2008U09 to Rs 12,000 crore in BRER 2009U10R
‡Y Under Rajiv Gandhi Grameen idyutikaran Yojana (RGG Y), allocation
increased by 27% to Rs 7,000 croreR
‡Y Vllocation under Indira Vwaas Yojana (IVY) increased !% to Rs 8,800
crore in 2009U10R Vllocation of Rs 2,000 crore made for Rural ousing

und (R
) in ational ousing Bank (B) to boost the resource base of
B for refinance operations in rural housing sectorR 

) !c " 

/2'1+2/+2'05.+0+.6+'"
The Indian cement industry has been on a high growth trajectory for more than a
decade, led by buoyancy in sectors such as real estate and constructionR 
,-.+'4'3'*06/,/60+'.0/65/
ement industry¶s sales, installed capacity and production have witnessed a
sustained growth between 2004 and 2009 
,'+625
The industry has witnessed continuous modernization and adoption of new
technologies in recent yearsR 
6,$50'.+6*+4',-6'/+21'5,
India ranks second in cement production in the world, with an installed capacity of
about 2!0 million tonnes in 2008±09R
c0.0:0/507/5/+3'01*0+'/05
In India, limestone is available in many states such as Rajasthan, imachal
Pradesh, Madhya Pradesh, Tamil adu, Vndhra Pradesh and harkhandR 

&  " 
c ! 

/2c+'0''/'.
ement being a capital-intensive industry creates high entry barriers for the new
playersR Moreover, the creation of distribution channel, acquisition of limestone
reserves etc makes entry of new players extremely difficultR
&c% c 
4,6!:'*+
Industry is highly dependent on government authorities for power supplyR ement
industry has been suffering from frequent power cutsR 
6'0./,4,6/*4'+,605 
ver the years, there has been deterioration in the quality of coalR In particular, the
ash content has increased implying lower calorific values for coal, and improper
and inefficient burning, etcR
This has increased the dependence of cement industry on imported coalR Poor port
infrastructure and high volatility in exchange rates creates concernsR   
c
!'1+23'*1'4',-6+.$0,+*/;66'+
RM is a value-added semi-finished product that results in a superior quality
concreteR
arious advantages of RM are quality control, eco friendly, greater speed of
construction, correct proportion of ingredients, lower wastage, reduced manpower
requirement etcR RM is a high margin product as compared to site mixed concrete
(SM )R
In India, RM accounting for meager % of cement production that is converted to
RM as against 70% in developed countriesR
Though India is the second largest cement manufacturer, it is among the lowest
cement consuming countriesR In India per capita cement consumption is 122 kg,
which is far below the world average of approximately !20 kgR ith the growth of
economy, per capita cement consumption rises at brisk paceR It indicates there is a
potential for growth in cement industryR  

c 
/.//4-+6.+ 
/.//+'.+'0+
Rising interest rates may impact housing demand and thereby affecting cement
demand and also capital expenditureR 
-7.+/+-+.
Bitumen and Engineering plastic have emerged as substitute of cement in road and
building constructionR  
c  c c"
Porter¶s five forces model clearly provides the picture of industry attractivenessR 

0'0//41'3-445/'."$
/2
Government of India exercise excessive control on oal and Power prices
supplyR Government authorities also control the transportation sectorR 
0'0//41'3-'."$1
In the recent past the cement industry is witnessing major change in purchase
quantityR ow the share of small purchases iReR retail purchases have been rising
whereas that of bulk purchase has declinedR 
/:05'0*+2/'*."$
/2 
arge number of players, vercapacity, igh degree of product homogeneity, 
igh storage cost and high exist barriers, creates intense rivalry among the firmsR 
2'0+3-7.+/+-+"$1
Use of Bitumen in Road construction and Engineering plastic in Building creates
some concern for the industryR 
0''/'.++'"$,/-*+
/2 
igh apital Investment, Distribution etwork and versupplied market deters
new entrantsR  

c  cc   " 

The types of cement in India have increased over the years with the advancement
in research, development, and technologyR The Indian cement industry is
witnessing a boom as a result of which the production of different kinds of cement
in India has also increasedR By a fair estimate, there are around 11 different types
of cement that are being produced in IndiaR The production of all these cement
varieties is according to the specifications of the BISR

Some of the various types of cement produced in India are:
‡Y linker ement
‡Y rdinary Portland ement
‡Y Portland Pozzolana ement(PP )
‡Y Portland Blast
urnace Slag ement
‡Y il ell ement
‡Y Rapid ardening Portland ement(RP )
‡Y Sulphate Resisting Portland ement(SRP )
‡Y hite ement

In India, the different types of cement are manufactured using dry, semi-dry, and
wet processesR In the production of linker ement, a lot of energy is requiredR It
is produced by using materials such as limestone, iron oxides, aluminum, and
silicon oxidesR Vmong the different kinds of ement produced in India, Portland
Pozzolana ement, rdinary Portland cement, and Portland Blast
urnace Slag
ement is the most important because they account for around 99% of the total
cement production in IndiaR
The '+50, variety of cement is the most common among the types of cement in
India and is produced from gypsum and clinkerR The rdinary Portland cement and
Portland Blast
urnace Slag ement are used mostly in the construction of airports
and bridgesR The production of white cement in the country is very less for it is
very expensive in comparison to grey cementR In India, while cement is usually
utilized for decorative purposes, marble foundation work, and to fill up the gaps
between tiles of ceramic and marbleR
The different types of cement in India have registered an increase in production in
the last few yearsR Efforts must be made by the cement industry in India and the
government of India to ensure that the cement industry continues innovation and
research to come up with more and more varieties in the near futureR 

5/<' *+
linker ement has registered a growth over the last few years in IndiaR The Indian
cement industry is growing at a rapid pace and this has given a major boost to the
production and sale of linker ement in IndiaR
The cement industry in India is highly technologically intensive and as a result, the
quality of clinker cement that is produced in India is of a very high grade and is
often considered among the best in the worldR The production of linker ement
requires a lot of energy because it needs to be manufactured at the temperature of
around 1400-140 degree elsiusR

If linker ement is kept in a dry condition, it can be stored for a long period of
time without any loss of its qualityR It is for this reason that linker ement is
preferred in the construction of houses, bridges, and complexesR

# ',/0''+50, *+
',/0' '+50, *+    is manufactured in the form of different
grades, the most common in India being Grade-!, Grade-4!, and Grade-!!R P
is manufactured by burning siliceous materials like limestone at 1400 degree
elsius and thereafter grinding it with gypsumR
Grade 4! is in high demand in India and is largely used for residential, commercial
and other building construction purposesR It has a compressive strength of 0 kg
per square cmR
Grade ! is known for its rich quality and is highly durableR ence it is used for
constructing bigger structures like building foundations, bridges, tall buildings, and
structures designed to with stand heavy pressureR Vs such, rdinary Portland
ement is used for quite a wide range of applicationsR 

'+50,==500 *+
Portland Pozzolana ement is manufactured by blending Pozzolanic materials, 
P clinker and gypsum either grinding them together or separatelyR Today
Portland Pozzolana ement is widely in demand for industrial and residential
buildings, roads, dams, and machine foundationsR
PP is resistant to harsh water attacks and prevents the formation of calcium
hydroxide at the time of cement setting and hydrationR It withstands aggressive
gases, thermal cracks, wet cracking, etcR The BIS quality specifications for PP is
used in heavy load infrastructure and constructions such as marine structures,
hydraulic structures, mass concreting works, plastering, masonry mortars, and all
applications of ordinary Portland cementR
Some of the other big names in the Portland Pozzolana manufacture are Ultratech,
Vmbuja, V cements, Star ement, and Birla groupR
Portland Pozzolana ement is highly popular in India and with many cement
plants setting up jetties for transportation, initial costs would gradually decrease as
wellR
½'+50,50.+-'0650 *+
In recent years, there has been a significant growth in the production of Portland
Blast
urnace Slag ement and its sales have also increased considerably over the
last few yearsR This has given a major boost to the Indian cement industryR The
Slag ement of the Portland Blast
urnace is a type of cement that is hydraulic and
is manufactured in a blast furnace where iron ore is reduced to ironR The molten
slag which is tapped is quickly drenched with water, dried, and then grounded to a
fine powderR This fine powder that is produced is commonly known as the Portland
Blast
urnace Slag ementR
The manufacture of Portland Blast
urnace Slag ement requires 7% less energy
than that needed for the production of the Portland cementR The low cost of
production of Portland Blast
urnace Slag ement makes it cheaper than Portland
cementR It is for this reason that in recent years, the sales of Portland Blast
urnace
Slag ement have increasedR
Portland Blast
urnace Slag ement has a typical light color and an easier 'finish¶
abilityR Its concrete workability is better and it has a higher flexural and
compressive strengthR It is resistant to chemicals and also has more hardened
consistencyR This is the reason that Portland Blast
urnace Slag ement is used in
the construction of dams, bridges, building complexes, and pipesR 

/5&55 *+ 
il ell ement as the name suggests, is used for the grouting of the oil wells,
also known as the cementing of the oil wellsR This is done for both, the off-shore
and on-shore oil wellsR
Vs the number of oil wells in India is increasing steadily, the sales of il ell
ement have also increasedR This has boosted the Indian cement industry to a
large-extentR 
il ell ement is manufactured from the clinker of Portland cement and also
from cements that have been hydraulically blendedR il ell ement can resist
high pressure as well as very high temperaturesR il ell ement sets very slowly
because it has organic 'retarders' which prevent it from setting too fastR It is due to
all these characteristics that it is used in the building of the oil wells where the
pressure is around 20,000 PSI and the temperature is around 00 degrees-

ahrenheitR
There are ! grades of il ell ementsR Grades  is ordinary and is used
commonly; SR is high sulphate resistant; and MSR is moderate sulphate
resistantR Each grade is used where it is applicable at a particular range of oil well
sulphate environments, temperatures, pressures, and depthsR il ell ement has
proved to be very beneficial for the petroleum industry due to its characteristicsR

or it is due to the il ell ement that the oil wells function properlyR

04/,
0',/'+50,6*+
Rapid ardening Portland ement (RP ) is a type of cement that is used for
special purposes when a faster rate of early high strength is requiredR RP has a
higher rate of strength development than the ormal Portland ement (P )R
The Rapid ardening Portland ement's better strength performance is achieved
by increasing the refinement of the productR This is the reason that its use is
increasing-in-IndiaR
Rapid ardening Portland ement is manufactured by fusing together limestone
and shale, at extremely high temperatures to produce cement clinkerR To this
cement clinker, gypsum is added in small quantities and then finely grounded to
produce Rapid ardening Portland ementR It is usually manufactured using the
dry process technologyR
Rapid ardening Portland ement is used in concrete masonry manufacture, repair
work which is urgent, concreting in cold weather, and in pre-cast production of
concreteR Rapid ardening Portland ement has proved to be a boon in the places
where quick repairs are required such as airfield and highway pavements, marine
structures, and bridge decksR
The Rapid ardening Portland ement should be stored in a dry place, or else its
quality deteriorates due to premature carbonation and hydrationR Vs the Indian
cement industry produces Rapid ardening Portland ement in large quantities, it
is able to meet the domestic demand and also export to other countriesR

Ô-5420+./.+/'+50, *+ 
-5420+ ./.+/ '+50, *+   is a type of Portland cement in
which the quantity of tricalcium alumiante is less than %R It can be used for
purposes wherever Portland Pozzolana ement, Slag ement, and rdinary
Portland cement is usedR
The use of Portland Sulphate Resisting ement has proved beneficial, particularly
in conditions where there is a risk of damage to the concrete from sulphate attackR
The use of Sulphate Resisting Portland ement is recommended in places where
the concrete is in contact with the soil, ground water, exposed to seacoast, and sea
waterR In all these conditions, the concrete is exposed to attack from sulphates that
are present in excessive amounts, which damage the structureR This is the reason
that the use of the Sulphate Resisting Portland ement have increased in IndiaR
The Sulphate Resisting Portland ement should be kept in a place which is dry
otherwise through premature hydration and carbonation the quality of cement
deterioratesR 

&2/+ *+ 

&2/+ *+has registered growth in production and sale in India in the last few
yearsR The hite ement sector has been growing at the rate of 11% per yearR This
has given the Indian cement industry a major boostR 
hite ement is much like the ordinary grey cement except that it is white in
colorR In order to get this color of the hite ement, its method of production is
different from that of the ordinary cementR owever, this modification in its
production method makes hite ement far more expensive then the ordinary
cementR
The production of hite ement requires exact standards and so it is a product
which is used for specialized purposesR hite ement is produced at temperatures
that hover around 140-100 degrees elsiusR This temperature is more than what
is required by the ordinary grey cementR
Vs more energy is required during the manufacture of hite ement, it goes to
make it more expensive than the ordinary grey cementR 
hite ement is used in architectural projects the use of white cement has been
specifiedR It is used in decorative works and also wherever vibrant colors are
desiredR hite ement is used to fill up the gaps between marble and ceramic tiles
for a smoother and more beautiful finishR  

 ! c"  

//$imestone is extracted from own mines, which are situated approxR 4 kmR
away from plantR The mining of limestone is done in such a way so as to get 78%
to 82% pure limestoneR
'-.2/$The extracted limestone is then transported to ai crusher by dumpersR
The limestone is crushed into small pieces of approxR 1 to 2 mmR sizesR
!'/,/$The crushed limestone along with latrine is feed into the Raw Mill for
grindingR The ground material is called Raw MealR It is than sent to the
SiloR 
5,/ $ In the Silo the Raw Material is blended to make the mixture uniformR

rom here the material is sent to the pre heatersR 
-'/ $ In pre heaters, the mixture is heated at various temperatures at various
stagesR This preheated material is now fed into the kiln where it is heated at the
temperature of 1400- 100 degree where calcinations take placeR oal is used in
the kiln to maintain the temperature and finally clinker emerges out of itR This
clinker is transported through a conveyor into a storage Silo from where it taken
out through vibratory feeders and fed into the open circuit cement grinding mill
hoppersR
!'/,/ $ The grinding of clinker with gypsum is done in cement millR It is
basically have where the grade of cement is controlled gypsum is added to increase
the setting time of the cementR Then cement is than stored for some timeR 
+'0 0, 406</ $ The cement is than conveyed to different cement storage
silos according to their grades and from silos it is packed in pp bags by using
electronic packaging machinesR

        
  
iquidity implies a firm¶s ability to pay its debts in the short runR If a firm has
sufficient net working capital, it is assumed to have enough liquidityR The current
ratio and the quick ratio and Vbsolute iquid ratio are the three ratios, which
directly measure liquidityR
-''+0+/ It measures the ability of the enterprise to meet its current
obligationsR It gives an idea about the short term liquidity position of the firmR
URRET RVTI = URRET VSSETS
URRET IVBIITIES

-/6<0+/'/>-/,0+/ In current ratio, the composition of current assets is
not consideredR V firm which has large amount of cash and accounts receivable is
more liquid than a firm with high amount of inventories in its current assetR Thus
we take quick ratio which shows the firmµs ability to pay its liabilities without
relying on sale and recovery of its inventoryR
QUI  RVTI = URRET VSSETS ± I ETRY ± PREPVID EXPESES
URRET IVBIITIES 
7.5-+/>-/,0+/" It is similar to liquid ratio; here absolute liquid assets are
calculated by adding both cash and bank balance and investmentsR
VBSUTE IQUID RVTI =VBSUTE IQUID VSSETS
URRET IVBIITIES   
:
These ratios measure the efficiency of the firm¶s activities and ability to generate
profitsR
!'.. '3/+ 0'/: This ratio is used as an indicator of the efficiency of the
production operation and the relation between production costs and selling priceR
YIndicates of how much profit is earned on your products without consideration of
selling and administration costsR
GRSS PR
IT MVRGI= GRSS PR
IT
ET SVES 

+'3/+0'/: It measures the overall efficiency of production,
administration, selling, financing, pricing and tax managementR 
ET PR
IT MVRGI= ET PR
IT
ET SVES

4'0+/'3/+0'/" This ratio indicates how much of income is generated
with respect to salesR 
perating Income =Profit before Interest, Depreciation and Tax (PBIDT) 
PERVTIG PR
IT MVRGI= PERVTIG PR
IT
ET SVES 

+-'  c>-/+  c" It measures the corporation's profitability that reveals
how much profit a company generates with the money shareholders have investedR

RE = PR
IT V
TER TVX (PVT)
SVREDERµS EQUITY

The RE is useful for comparing the profitability of a company to that of other
firms in the same industryR 
+-' 04/+05*45, c"It measures the efficiency and
profitability of firm¶s capital investmentsR

R E = PBIDT
VPITV EMPYED

R E should be always greater than company borrowsR therwise increase in
borrowings will result in decrease in Earnings per ShareR 

)c "It gives the speed of conversion of current assets
(liquidity) into cashR 
:+'-':'0+/"It measuresumber of times that you turn over or
sell inventory during the yearR igh inventory turnover is an indicator of good
inventory managementR But a high ratio can also mean there is a shortage of
inventoryR V low turnover may indicate overstocking, or obsolete inventoryR

Inventory Turnover Ratio = SVES
I ETRY
0./:+'"YIt measures the average number of days it will take to sell your
inventoryR

Days in Inventory = UMBER 
DVYS
I ETRY TUR ER RVTI 

7+'.-':'0+/" It measures the how many times credit sales have been
created and collectedR
Debtors Turnover Ratio= ET SVES
DEBTRS  
7+'. 556+/'/," It measures theYlength of time your trade payables are
outstanding before they are paidR
Debtors ollection Period?UMBER 
DVYS
DEBTRS TUR ER RVTI 

/;,..+-':'0+/" It indicates the ability of the firm to use fixed assets
to generate sales for the firmR

ixed Vsset Turnover Ratio = ET SVES

IXED VSSETS 

c)c!c : These are of two types:

1R apital Structure Ratio- these are based on proportions of debt and equity in the
capital structure of the firmR
2R overage Ratio- these are derived from the relationships between debt servicing
commitments and sources of funds for meeting this obligationR

04/+05+'-6+-'0+/" 
7+c>-/+'0+/ It indicates the relative contributions of creditors and ownersR
Debt equity ratio = DEBT
EQUITY

overage Ratio: 
+'.+ :'00+/ This ratio tells us how many times the firm can cover or
meet the interest payments associated with debtR

Interest coverage ratio= EBIT
ITEREST 

c @cc   
+*0.-'.+2.20'25,'.'+-'0,:05- 
c0'/.4'20'c"It gives the performance of the firmR
Y
EPS = ET PR
IT
UMBER 
EQUITY SVRES

'/6c0'/.0+/"It is the number of times the market price of a share is
discounted vis-à-vis the EPS of the firmR It is the most popular financial ratio in the
stock market for secondary market investors as it indicates whether the stock is
undervalued or overvaluedR This method is useful as long as the firm is a viable
business entity and its real value is reflected in its profitsR

P/E RVTI = MVRET PRI E 
SVRE
EVRIG PRI E 
SVRE (EPS)
/:/,,4'20' " Dividend paid for each Equity Share holderR 

DPS= DI IDED PVID
UMBER 
EQUITY SVRES

/:/,,40-+'0+/: It indicates ratio of amount of Divided paid from et
profit as Dividend to equity share holdersR Dividend paid include the Dividend Tax

Dividend payout ratio= DI IDED PVID (I UDIG DI IDED TVX)
ET PR
IT  

+1'+24'20'"It indicates the Book alue of each Equity share of the
companyR 

et orth per Share= ET RT
UMBER 
EQUITY SVRES    

( cA 
c  

This section provides the overview and financial information on prominent players
in the Indian cement sector like

‡Y Vssociated ement ompany tdR (V ),
‡Y Grasim Industries tdR
‡Y Vmbuja ements tdR
‡Y UltraTech ement tdR
‡Y RR ement imitedR
‡Y Madras ements tdR
‡Y aypee Group tdR
‡Y Binani ement tdR
‡Y Prism ement tdR
‡Y India ements tdR
‡Y   

( cc   

Vmbuja ements td (V ) started out as a joint sector coR with public sector
Gujarat Industrial Investment orporation (GII ) and arottam Sekhsaria
Vssociates in 1981R ater with private partners buying out GII 's stake, the
company became a private sector ventureR
The company is the most cost efficient cement manufacturer in the countryR It has
shown innovation in utilizing measures like sea transport, captive power plants,
and imported coal and availing of govtR sops and subsidies to constantly check the
costsR It has also been a major player in exports of cementR
In the last decade the company has grown tenfoldR It was the first company in India
to introduce the concept of bulk cement movement by the sea transportR The
company's most distinctive attribute, however, is its approach to the businessR
Vmbuja follows a unique homegrown philosophy for successful survivalR Vmbuja
is the most profitable cement company in India, and one of the lowest cost
producers of cement in the worldR
The company was awarded for its credit, the ational Vward for commitment to
quality by the Prime Minister of India, ational Vward for outstanding pollution
control by the Prime Minister of India, Best Vward for highest exports by
VPEXI and Economic Times - arvard Business School Vssociation Vward for
corporate excellence in different yearsR The company was adjudged as the top
Indian company in the cement sector for the Dun and Bradstreet - Vmerican
Express orporate Vwards 2007R The company developed a unique homespun
channel management model called hannel Excellence Programmed ( EP) for
marketing their productR ver 7000 dealerships and 20,000 retailers across India
are covered under this modelR The company name was changed from Gujarat
Vmbuja ements imited to Vmbuja ements imited on Vpril, 2007, the word
Gujarat was dropped to reflect the true geographical presence of the companyR  

" 

It is having eight cement plants at Vmbujanagar (Gujarat), Darlaghat (imachal
Pradesh), Upperwahi (Maharashtra), Rabriyawas (Rajasthan), Daburji (Punjab),
Bhatinda district (Punjab) and Ropar (Punjab)R      

 
! 
! 
" 

The ompany kept pace with the double digit demand growth, and maintained its
strong position of approximately 18% market share in its main markets, and around
10% on an all India basisR
Sales volumes increased by R%, to 18R8 million tonnes in 2009 as against 17R
million tonnes in 2008R
The ompany has built a large network of over ,000 dealers and 20,000 retailers
across 18 states in IndiaR
ement production and sales volumes increased by % and R% respectively, to
reach 18R8! million tonnes and 18R79 million tonnesR
Vverage sales realization increased by 7%, to RsR !,70 per tonneR 
et sales were 14% higher, at RsR7077 croresR EBITDV was 8% higher, at RsR1972
croresR
onsolidated net profit excluding exceptional items /6'0., #B8 + .#Ô
6''.R
Total cement production increased by %compared to 2008, from 17R8 to 18R8
million tonnes, despite the fact that clinker production was marginally lower at
11R4 million tonnesR 

 ! (c " 

During 2009 a new bulk cement terminal started operation at ochi, providing
access to new markets in the South, and two new captive power units, each with 1
M capacities, were commissioned at Bhatapara ( hhattisgarh) and Maratha
(Maharashtra)R
The new clinker production line at Rauri (P), also with 2R2 million tonnes
capacity, has commenced production trials during anuary 2010R The associated
cement grinding facilities at Dadri (UP) and alagarh (P), each with 1R million
tonnes capacity were commissionedR
Vn additional !0 M captive power unit at Vmbujanagar (Gujarat) was
commissioned on an 2010, taking total captive power capacity to more than 400
MR

urther investments to improve rail connectivity at several locations are also in
progress, for increased efficiency of logistics operationsR
Vdditional cement grinding capacity is also under construction, at the Bhatapara
and Maratha units, and will be completed during 2010R
By the end of the year, the ompany's total installed cement capacity will be
increased from 22 million tonnes to approximately 27 million tonnesR
   
Year Y #$ #Ô$# # $#Ô #$# 
# Y Y Y
Y
urrent RatioY
1R14Y 1R9Y 1R!Y 1R8Y 
iquid RatioY
0R74Y 0R9Y 0R8Y 1R10Y
Vbsolute iquid RatioY
0R92Y 0R80Y 1RY 2R1Y 
perating Profit %Y
!0Y !Y 4Y !9Y
Gross Profit %Y
!0Y !Y !Y !7Y 
et Profit %Y
17Y 2!Y !1Y 24Y
Return on Equity (RE) %Y
19Y 2Y !8Y 4!Y
Return on apital employed
(R E) %Y !0Y !Y 8Y 2Y 
et orking apital(in
rores)Y 2!8R2Y 8RY 418R24Y 47R02Y
Inventory Turnover RatioY
10R!4Y R!Y 9R81Y 1R!!Y

ixed Vsset Turnover RatioY
2R0Y 1R9Y 1R9!Y 2R2Y
Debtors Turnover RatioY
4R44Y 27R9Y !9R1Y 9R9Y
Debtors ollection PeriodY
7R8Y 1!R18Y 9R!2Y R24Y
Debt equity ratioY
0R0!Y 0R0Y 0R07Y 0R2Y
Interest coverage ratioY
81R!!Y 2R08Y !9R2Y 20R!Y
EPS(in Rs)Y
8R00Y 9R21Y 11R2Y 9R91Y
P/E RVTIY
4R9Y 17R81Y 12R47Y -Y
DPS(in Rs)Y
2R40Y 2R20Y !R0Y !R04Y
Dividend payout %Y
!Y 28Y !Y !Y 
et orth per Share(in Rs)Y
42R4Y !7R2Y !0R2Y 2!R02Y

#! 

The various ratios calculated are represented in graphical form for better
understandingR

#c 
cc   

UltraTech ement imited was incorporated as a public limited company on
Vugust 2000, as ³ T ement imited´ a 100% Subsidiary of arsen Toubro 
imitedR The name of the ompany was changed to UltraTech ement oR 
imited with effect from 19th ovember 200! after the Vditya Birla group owned
Grasim Industries acquired itR The name of the company was again changed to
UltraTech ement imited with effect from 11th ctober 2004R
UltraTech ement imited, a Grasim subsidiary was incorporated in 24th Vugust
2000 as  T ement imited, has an annual capacity of 17 million tonnesR  

" 

It manufactures and markets rdinary Portland ement, Portland Blast
urnace
Slag ement and Portland Pozzolana ement and Ready Mix oncreteR  

" 

Vs part of the eighth biggest cement manufacturer in the world, UltraTech ement
has five integrated plants, five grinding units as well as three terminals of its own
(one overseas, in olombo, Sri anka)RUltraTech ement is the country¶s largest
exporter of cement clinkerR The export markets span countries around the Indian 
cean, Vfrica, Europe and the MiddleEastR
Ultratech subsidiaries are Dakshin ement imited and UltraTech eylinco (P) 
imitedR  

 
! 
! 
" 

Domestic sales volume rose by 1!% over
Y09, though total volume was up by
11%R 
et Turnover rose by 10%, attributable to higher domestic sales volumeR Exports
and Ready Mix oncrete (RM ), each, contributed to around 7% of ompany¶s
net turnoverR
Interest cost decreased from RsR 12 crores in
Y09 to RsR 118 crores in
Y10 due
to repayment of long term debts to the tune of RsR !00 croresR 
+4'3/+3'.+,0+.86''.0.6*40',+.ÔÔ6''./   

.+055,60406/+
(MnRTPV):
linker 17R80 17R80
ement Y 2!R10Y 21R90
Y 
',-6+/"
linker 1R 1R07
ement 17R4 1R87
Y Y
Y  

 ! (c " 

ompany has earmarked around RsR 2,00 crores towards capex to be spent over
the next ! yearsR This will be invested in augmenting the grinding capacity at its
Unit in Gujarat, installing waste heat recovery systems at its Units in Maharashtra
and Vndhra Pradesh, setting-up packaging terminals at various locations and for
other modernization projects

#   
Year Y #$ #$ #Ô$ # $#Ô #$
#Y # # Y # 
Y Y Y
urrent RatioY
1R1!Y 1R09Y 1R02Y 1R27Y 1R!9Y 
iquid RatioY
0R0Y 0R4Y 0R4Y 0R70Y 0R71Y
Vbsolute iquid RatioY
1R!Y 0R91Y 0R21Y 0R7Y 0R42Y 
perating Profit %Y
!0Y 28Y !!Y !0Y 18Y
Gross Profit %Y
28Y 2Y !2Y 28Y 1Y 
et Profit %Y
1Y 1Y 18Y 1Y 7Y
Return on Equity (RE) %Y
24Y 27Y !7Y 44Y 22Y
Return on apital
employed (R E) %Y !7Y !1Y !Y 41Y 19Y 
et orking apital(in
rores)Y 17!R!Y 118R89Y 2R!!Y 204R99Y 21R47Y
Inventory Turnover RatioY
8R8Y 9R22Y 9R04Y 11R!!Y 8R9Y

ixed Vsset Turnover
RatioY 1R4!Y 1R!8Y 2R20Y 1R9Y 1R!0Y
Debtors Turnover RatioY
!2RY !2R91Y 2R4!Y 2R7Y 19R12Y
Debtors ollection PeriodY
11R17Y 11R09Y 14R!Y 1!R4Y 19R09Y
Debt equity ratioY
0R!Y 0R9Y 0RY 0R90Y 1R40Y
Interest coverage ratioY
14R2Y 14R41Y 24R14Y 17R0!Y R9Y
EPS(in Rs)Y
87R82Y 78R48Y 80R94Y 2R84Y 18R47Y
P/E RVTIY
1!R14Y 7R01Y 9RY 12R29Y !R98Y
DPS(in Rs)Y
R00Y R00Y R00Y 4R00Y 1R7Y
Dividend payout %Y
8Y 7Y 7Y 7Y 11Y 
et orth per Share(in
Rs)Y !70R21Y 289R!Y 21RY 141R9Y 8!R4Y
##!   

cc  

India ements was set up in 194 and the company's first plant was established in
1949 at Sankarnagar, Tamil aduR Since the India ements tdR has been
established, it has risen in stature to become the biggest cement producer in south
IndiaR
India ements has 7 plants spread across Vndhra Pradesh and Tamil aduR The
total production capacity of the plants is around 9 million tons per yearR In south
India, India ements ompany has a 28% market share and it plans to achieve a
market share of around !% in the near futureR
Vround 90% of India ements ompany's produce is sold in the Tamil adu and 
erala marketsR India ements ompany has a distribution network which is very
strong - it has over 10,000 stockists out of which around 2% is devoted to the
companyR  

" 

The India ements tdR owns famous brands such as Rassi Super Power, Sankar
Super Power, and oromondal Super Power,Y Sulphate Resisting Portland ement
(SR )R
The India ements ompany has subsidiary companies which include I 

inancial Services, Industrial hemicals Monomers, I  International, and I 
SecuritiesR In 1997 India cements acquired Vruna Sugars
inance td which was
later renamed as India ements apital
inance tdR 

 " 

It also acquired ement Plant of isaka ement Industry, at Tandur, Ranga Reddy
district of Vndhra Pradesh with Installed capacity 900000 TonnesR The cement
division of Raasi ement (R ) was vested with the company from VprilR1998
under a scheme of arrangement India ements has established itself as a leading
cement manufacturing company and as it plans to expand its production capacity,
the company's position in the market is sure to rise in the near futureR  

 
! 
! 
" 

The clinker production from the company's cement plants during
Y 09 was lower
at 9R8! akh Tonnes compared to previous year 72R1! akh Tonnes and cement
production was also marginally lower at 91R11 akh Tonnes compared to previous
year 92R!4 akh TonnesR 

 ! (c " 

Increasing the capacity of its plants at ishnupuram and Malkapur besides setting
up grinding units at hennai, Tamil adu and Parli, Maharashtra, all of which are
now functionalR The company is in the process of finalizing additional capacity
creation in orth India through Greenfield projects acquisitionR The proposed plant
at imachal Pradesh for which company holds the mining lease has been delayed
due to infrastructure bottlenecksR
   
Year Y = =  = =  = =  = = 
Y Y Y Y
urrent RatioY
1R8Y 2R19Y !R9Y 4R0Y 
iquid RatioY
1R4Y 1R8Y !R4Y !RY
Vbsolute iquid RatioY
0R21Y 0RY 0RY 0R21Y 
perating Profit %Y
!2Y !7Y !!Y 18Y
Gross Profit %Y
28Y !!Y 27Y 8Y 
et Profit %Y
1!Y 21Y 21Y !Y
Return on Equity (RE) %Y
1Y 2Y !Y Y
Return on apital
employed (R E) %Y 18Y 21Y 17Y 8Y 
et orking apital(in
rores)Y 990R21Y 11R88Y 128!R2Y 11!9R29Y
Inventory Turnover RatioY
4R08Y 9R18Y 9R79Y 7R8!Y

ixed Vsset Turnover
RatioY 0R8Y 0R87Y 0R80Y 0R7!Y
Debtors Turnover RatioY
9R2Y 9R74Y 8R8Y R28Y
Debtors ollection PeriodY
!9R41Y !7R48Y 42R4Y 8R10Y
Debt equity ratioY
0RY 0RY 0R9!Y 0R7Y
Interest coverage ratioY
8R0!Y 9R1Y 4R0Y 1R!4Y
EPS(in Rs)Y
1R!0Y 22R2Y 21R7!Y 2R!8Y
P/E RVTIY
R92Y 8R2Y 7R4Y 9R44Y
DPS(in Rs)Y
2R00Y 1R00Y 1R00Y 0R00Y
Dividend payout %Y
1Y 10Y Y 0Y 
et orth per Share(in
Rs)Y 102R9Y 89R2Y 0R97Y 41R49Y

#! 

½(% cc   

RR ement is an affiliate of the RR rganization, which was founded by ala 
amlapat SinghaniaR The RR rganization is an association of industrial and
commercial companies and has operations in a broad number of industriesR 
ur cement operations commenced commercial production in May 197 at our
first plant at imbahera in the state of Rajasthan

It commissioned a second grey cement plant at our Mangrol plant in 2001, with a
production capacity of R7 million tonR Today, R R ement tdR is one of the
largest cement manufacturers in orthern IndiaR e are also the second largest
white cement manufacturer in India by production capacityR hile the grey cement
is primarily sold in the northern India market, the white cement enjoys demand in
the export market including countries like South Vfrica, igeria, Singapore,
Bahrain, Bangladesh, Sri anka, enya, Tanzania, UVE and epalR 

ur access to high quality limestone reserves that are suitable for production of
white cement provides us with a competitive advantageR Backed by state-of-the-art
technology and highly skilled manpower against the backdrop of India¶s
infrastructural growth in an overdrive, we are upbeat about the futureR e are
confident of contributing heavily in India¶s journey of developmentR e see a
world of concrete ideas on the horizonR  

"  

e produce grey cement and white cementR Grey cement produced by us consists
of rdinary Portland ement (³P ´) and Portland Pozzolana ement (³PP ´)R 
P has three principal grades that are differentiated by their compressive
strengths, and consist of !-grade, 4!-grade and !!-grade P R

The cement products are marketed under the brand names RR ement and
Sarvashaktiman for P products, RR Super for PP products and RR hite
and amel for white cement products, which we believe are well known brandsR   

"  

e manufacture grey cement in two facilities located at imbahera and Mangrol
in the state of Rajasthan in orthern IndiaR hite cement is produced at our facility
at Gotan in the state of RajasthanR  
 
! 
! 
" 

EBITDV was 8% higher, at RsR1972 croresR
onsolidated net profit excluding exceptional items increased 12%, to RsR1217
croresR
 
 ! (c " 

The clinkerisation expansion projects at Bhatapara and Rauri were commissioned
in December 2009 and anuary 2010 respectivelyR
The total cost of these two projects will be approximately RsR 2,700 croresR
Vpart from the above two major projects, an additional !0 M captive power unit
at Vmbujanagar(Gujarat) is currently undergoing production trials and will be
commissioned during the first quarter 2010, taking total captive power capacity to
more than 400 MR
In addition, three new ships for western coastal transportation are under
construction, of which two are expected to be brought into service in 2010R

urther investments to improve rail connectivity at several locations are also in
progress, for increased efficiency of logistics operationsR Vdditional cement
grinding capacity is also under construction, at the Bhatapara and Maratha nits, and
will be completed during 2010R By the end of the year, the ompany's total
installed cement capacity will be increased from 22 million tonnes to
approximately 27 million tonnesR Vll the expansion projects have been financed
through internal accruals  














½   
Year Y #$# #Ô$# # $#Ô #$# 
Y Y Y Y
urrent RatioY
2RY 2R48Y 2R!1Y 2RY 
iquid RatioY
2R4Y 1R92Y 1R97Y 2R22Y
Vbsolute iquid RatioY
0R44Y 0R!Y 0R97Y 1R48Y 
perating Profit %Y
22R17Y 29R04Y 27RY 1R18Y
Gross Profit %Y
19R1!Y 2R8Y 24R74Y 9R!Y 
et Profit %Y
10Y 18Y 14Y 4Y
Return on Equity (RE) %Y
12R00Y 2R17Y 21R78Y 4R8!Y
Return on apital employed
(R E) %Y 18Y 2Y 24Y 11Y 
et orking apital(in
rores)Y 87R07Y !80R42Y !1R2Y !17R04Y
Inventory Turnover RatioY
11R00Y 12R7!Y 11R21Y 10R40Y

ixed Vsset Turnover RatioY
1R2!Y 1R!4Y 1R!4Y 0R97Y
Debtors Turnover RatioY
28R22Y 2R47Y 19R84Y 18R94Y
Debtors ollection PeriodY
12R9!Y 14R!!Y 18R40Y 19R27Y
Debt equity ratioY
0R48Y 0R48Y 0R8Y 0R8Y
Interest coverage ratioY
R14Y 10RY 8R8!Y 1R90Y
EPS(in Rs)Y
20R!Y !7R92Y 2R4Y 4RY
P/E RVTIY
1R9Y 4R!2Y R7Y !7R4Y
DPS(in Rs)Y
!R0Y R00Y !R0Y 1R0Y
Dividend payout %Y
20Y 1Y 1Y !7Y 
et orth per Share(in Rs)Y
19R1Y 10R!Y 117R28Y 9R42Y
½#!  

! 

!'0./* ,-.+'/. /*/+,, a flagship company of the Vditya Birla GroupR
Starting as a textiles manufacturer in 1948, today Grasim's businesses comprise
viscose staple fibre ( S
), cement, chemicals and textilesR Its core businesses are
S
and cement, which contribute to over 90 per cent of its revenues and
operating profitsR In uly 2004, Grasim acquired a majority stake and management
control in UltraTech ement imitedR ne of the largest of its kind in the cement
sector, this acquisition catapulted the Vditya Birla Group to the top of the league in
IndiaR The cement business of the Group is being restructured in a phased mannerR
In the first phase, Grasim's cement business is being demerged into Samruddhi
ement imited, a subsidiary of GrasimR In the second phase, Samruddhi ement 
imited will amalgamate with UltraTechR Upon completion of restructuring, the
cement business will be consolidated in UltraTech, a pure play cement companyR

Grasim ventured into cement production in the mid 1980s, setting up its first plant
at awad in Madhya Pradesh and since then it has grown to become a major player
in the cement industryR
Vll the plants are located close to sizeable limestone mines and are fully automated
to ensure consistent qualityR Vll units use state-of-the-art equipment and
technology and are certified with IS 9001 for quality systems and IS 14001 for
environment management systems  
"
Grasim is also nurturing some regional brands like ikram ement and Rajashree
ementR Grasim is a leading ready mix concrete (RM ) player in IndiaR Grasim is
also the largest producer of white cement in IndiaR The white cement division
manufactures world-class white cement in a variety of textures and finishesR It has
applications in floorings and exterior wall finishes, apart from other innovative
usesR
Grasim is a voluntary member of the ement Sustainability Initiative ( SI), which
is the apex for the cement industry globally to establish common measures, share
best practices and exchange data relating to environmental impactR  

"
omposite plants: awad, Rawan, Shambhupura, Malkhed, Reddipalayam, 
otputli
Ready-mix concrete (! plants)
Ready-mix concrete (!4 plants) 
hite cement: haria, hanga  

 
! 
! 
"  

et income from operations at RsR2019 rores increased by 9% driven by higher
volumes in ement businessR
PBIDT rose by !2% with higher volumes, lower input and energy pricesR
Interest cost increased from RsR!07 rores to RsR!! roresR oans aggregating
RsR0 rores were raised during the year to fund capital expenditureR 
et profit before extraordinary gain was RsR279 rores in
Y10, as against
RsR2187 rores in
Y09, an increase of 2 %R 

 ! (c " 

ompany spent RsR70 rores towards the completion of expansion projects in the
cement business, and normal modernization in all the businessesR

Y
Y

   
Year Y #$ #$ #Ô$ # $#Ô #$
#Y # # Y # 
Y Y Y
urrent RatioY
1R!2Y 1R!Y 1R!8Y 1R2Y 1R9Y
iquid RatioY
0R8Y 0R7Y 0R92Y 1R0Y 1R00Y
Vbsolute iquid RatioY
7R18Y 2R07Y 1R9Y !R0!Y 2R8Y
perating Profit %Y
!Y 2Y !4Y !0Y 24Y
Gross Profit %Y
!Y 2Y !2Y 29Y 2!Y
et Profit %Y
21Y 1Y 20Y 18Y 1!Y
Return on Equity (RE) %Y
2Y 17Y 2Y 2Y 17Y
Return on apital
employed (R E) %Y !Y 21Y 29Y 27Y 21Y
et orking apital(in
rores)Y 281R!2Y 820R0!Y 814R7Y 892R!!Y 7!R!9Y
Inventory Turnover RatioY
19R9Y 7R84Y 10R44Y 10R44Y 8R82Y

ixed Vsset Turnover
RatioY 4R8Y 1R2Y 2R4Y 2R4Y 2R20Y
Debtors Turnover RatioY
2!R9Y 19R!0Y 14R!Y 14R92Y 1R01Y
Debtors ollection PeriodY
1R41Y 18R92Y 2R44Y 24R4Y 22R79Y
Debt equity ratioY
0R1Y 0R!Y 0R!9Y 0R47Y 0R40Y
Interest coverage ratioY
20R00Y 1R81Y 28R71Y 20R7Y 1!R!Y
EPS(in Rs)Y
191R!Y 179R7Y 22!R!Y 17R!Y 94R1Y
P/E RVTIY
14R70Y 8R80Y 11R80Y 12R80Y 22R00Y
DPS(in Rs)Y
!0R00Y !0R00Y !0R00Y 27R0Y 20R00Y
Dividend payout %Y
18Y 19Y 1Y 19Y 24Y 
et orth per Share(in
Rs)Y 779R!Y 10!!R8!Y 887R99Y 79R9Y 4!R4Y

#! 

  cc 
Madras ements td is the flag ship company of Ramco Group, a well known
business group of South IndiaR It is based at hennaiR The main product of the
company is Portland cement manufactured through the five advanced production
facilities spread over South IndiaR The cement capacity is 10 million tons per
annumRY Madras ements td is a trend-setter in adopting state-of-the-art
technology for the manufacture of ement, Ready Mix oncrete and Dry Mortar
ProductsR M  is the first to bring the following technologies in South India's
cement industryR
& "Y
‡Y ½0:.10',from entre for Science and EnvironmentR
‡Y 0+/0510',3'c' .':0+/from onfederation of Indian
IndustriesR
‡Y .+c'c33/6/+/+from ational ouncil for ement and Building
MaterialsR
‡Y '4'0+'3'*0610',from Economic TimesR
‡Y .+*4':*+/c''3'*06from International ongress
on hemistry of ementR
‡Y )/.:.:0'/02,-.+'/0510',from Vll India Manufacturers
rganisationR
‡Y -./..c;655610',from Industrial EconomistR
‡Y c;4'+'3'*0610',from VPEXIR
‡Y +0+03+10',.from Tamil adu VP GovernmentsR  
"
The company is the fifth largest cement producer in the countryR Ramco Super
grade is the most popular cement brand in South IndiaR
The company also produces Ready Mix oncrete and Dry Mortar productsR In
addition, the company also operates one of the largest wind farms in the countryRY
Y  

"
M  operates five plants with a total capacity of 10 MTPVR
‡Y R R agar, Tamil adu (1R2 MTPV)
‡Y ayanthipuram, Vndra Pradesh (!R MTPV)
‡Y Vlathiyur, Tamil adu (!R0 MTPV)
‡Y Vriyalur, Tamil adu (2R0 MTPV)
‡Y Mathod, arnataka (0R2 MTPV) 
 ! (c "
The company plans to establish grinding and packing plants near fly ash
availability areas / major cement consumption areas to help the ompany in
economizing transportation costs and better servicing of markets
Grinding Plant with a capacity of 0R0 Million Tonnes Per Vnnum (MTPV) at 
attuputhur illage, Uthiramerur Taluk, and ancheepuram District Tamil adu
was commissioned in the month of une 2009R
Grinding Plant with a capacity of 0R0 MTPV at Singhipuram illage, alapady
Taluk, Salem District, and Tamil adu was commissioned in the month of
September 2009R
Grinding Plant with a capacity of 0R9 MTPV at olaghat, Purba Medinipur
District, est Bengal, was commissioned in the month of anuary 2010R
Packing Plant with a capacity of 120 Tonnes per our (TP) at Malkapur, 
algonda DistrictR
Vndhra Pradesh was commissioned in the month of September 2009R
Packing Plant with a capacity of 120 TP at Vralvaimozhi, anyakumari District
Tamil adu was commissioned in the month of December 2009R  
 
! 
! 
" 
perating profit before interest, depreciation and tax was higher at RsR877R29
crores as against RsR79!R0 rores of the previous year, showing 11% increaseR
The higher borrowings during the year for the various expansion projects had
resulted in increase in interest costR
The commissioning of the new projects had also increased the depreciation charge 

   
Year Y #$ #$ #Ô$ # $#Ô #$
#Y # # Y # 
Y Y Y
urrent RatioY
2R08Y 2R08Y 1R94Y 1RY 1R4!Y 
iquid RatioY
1R!2Y 1R!2Y 1R!!Y 1R2!Y 0R98Y
Vbsolute iquid RatioY
0R2!Y 0R29Y 0R28Y 0R!7Y 0R0Y 
perating Profit %Y
!!Y !!Y !9Y !7Y 22Y
Gross Profit %Y
2Y 28Y !4Y !2Y 1Y 
et Profit %Y
1!Y 1Y 21Y 20Y 8Y
Return on Equity (RE) %Y
2!Y 29Y 4!Y 4Y 201Y
Return on apital
employed (R E) %Y 17Y 18Y 24Y !!Y 17Y 
et orking apital(in
rores)Y 4R24Y 440R!8Y 401R1Y !94R1Y 228R70Y
Inventory Turnover RatioY
R4Y 7R21Y 8R0Y 11R9!Y 9R77Y

ixed Vsset Turnover
RatioY 0R72Y 0R79Y 1R0!Y 1R42Y 1R00Y
Debtors Turnover RatioY
17R1Y 2R41Y !1R74Y 2!R42Y 19R99Y
Debtors ollection PeriodY
21Y 14Y 12Y 1Y 18Y
Debt equity ratioY
1RY 1R9Y 1R71Y 1R02Y 1R!Y
Interest coverage ratioY
4R2Y R00Y 12R9!Y 21R!Y 4R!8Y
EPS(in Rs)Y
14R8Y 1R28Y !4!R02Y 2R0!Y R4!Y
P/E RVTIY
8R1!Y 4R7!Y 9R7Y 10R71Y !!R29Y
DPS(in Rs)Y
2Y 2Y 40Y 2Y 1Y
Dividend payout %Y
1R7Y 1R!4Y 1!R7Y 11R!1Y 2R18Y 
et orth per Share(in
Rs)Y R48Y 2R9Y 801R!8Y 1R72Y !2R4Y

#! 

Ô      c 
cc#$#
(   (%  
 cc  c cc  cc  ! cc 
Y  Y 
Y  Y  Y  Y  Y

urrent
RatioY 1R14Y 1R09Y 1R8Y 2RY 1R!Y 2R08Y 

iquid RatioY 0R74Y 0R4Y 1R4Y 2R4Y 0R7Y 1R!2Y

Vbsolute 
iquid RatioY 0R92Y 0R91Y 0R21Y 0R44Y 2R07Y 0R29Y 

perating !0Y 27Y !2Y 22Y 2Y !!Y
Profit %Y

Gross Profit
%Y !0Y 2Y 28Y 19Y 2Y 28Y 

et Profit %Y 17Y 1Y 1!Y 10Y 1Y 1Y

Return on
Equity %Y 18Y 27Y 1Y 12Y 17Y 29Y

Return on
apital
employed
(R E) %Y !0Y !1Y 18Y 18Y 21Y 18Y 

et 
orking
apitalY 2!8R2Y 118R89Y 990R21Y 87R07Y 820R0!Y 440R!8Y

Inventory
Turnover
RatioY 10R!4Y 9R22Y 4R08Y 11Y 7R84Y 7R21Y

ixed Vsset
Turnover
RatioY 2R0Y 1R!8Y 0R8Y 1R2!Y 1R2Y 0R79Y

Debtors
Turnover
RatioY 4R44Y !2R91Y 9R2Y 28R22Y 19R!Y 2R41Y

Debtors
ollection
PeriodY 7R8Y 11R09Y !9R41Y 12R9!Y 18R92Y 14Y

Debt equity
ratioY 0R0!Y 0R9Y 0RY 0R48Y 0R!Y 1R9Y

Interest
coverage
ratioY 81R!!Y 14R41Y 8R0!Y R14Y 1R81Y Y

EPS(in Rs)Y 8Y 78R48Y 1R!Y 20R!Y 179R7Y 1R28Y
P/E RVTIY 4R9Y 7R01Y R92Y 1R9Y 8R8Y 4R7!Y

DPS(in Rs)Y 2R4Y Y 2Y !RY !0Y 2Y

Dividend
payout %Y !Y 7Y 1Y 20Y 19Y 1Y 

et orth
per Share(in
Rs)Y 42R4Y 289R!Y 102R9Y 19R1Y 10!!R8!Y 2R9Y

Ô#!     

ptimum ratio to be maintained is 2:1RThe ompany should have twice the current
assets to match its current obligationsR 0,'0. 6*+. +, has most optimum
valueR 

iquid ratio includes only liquid asset which can be readily converted to meet
current obligations of the companyR Ratio should be maintained optimumR It is
more precise than current ratio it clearly indicates the solvency position if the
companyR 

perating profit % highlights the operational efficiency of the firmR perating
profit is Profit before Interest, Depreciation and Tax (PBIDT)R igher the value
satisfies the shareholders of the companyR 0,'0. 6*+. +, has highest 
perating efficiency of allR 

et Profit indicates the equity earning of the companyR igher the value satisfies
the shareholders of the companyR Madras cements td has et Profit % of 1
though having high perating Profit % is due to high Interest, Depreciation costR

Return to Equity higher makes the share holders of the company happy and attracts
more retail and institutional investorsR 0,'0. *+.+, has highest RER
Vmbuja ements td has the lowest debt of allR Debt equity indicates the capital
structure of companyR 0,'0. *+.+, has highest Debt Equity ratioR Debt
Equity ratio must be maintained at optimum valueR 

igher the ratio shows the better the financial position the firmR It clearly shows
the interest paying ability of the firmR Vmbuja cements td have highest Interest
ratio because it has lowest debt of allR

EPS is amount earned by one equity shareR igher EPS makes it highly attractive
for shareholdersR Grasim td and Ultratech td has highest EPS RVditya Birla
Group has high EPSR 

igher the P/E ratio indicate stock is valued richly this is could be due to market
expectationsRYYP/E ratio is a "fundamental" measure used by long-term investorsR
Industry average P/E ratio is around 9R

Dividend per Share is dividend earned by each shareRDPS depends upon Dividend
allocated for the year by management boardR Grasim pays highest dividend per
equity shareR

Percentage of et Profit to be distributed as dividend to Equity share holders while
the rest of the net profit is added to reserves and surplusR Vmbuja ements td has
highest Dividend payout ratio

cc  cc "    

c"
‡Y Per capita consumption in India continues to be low at 14! kg, as compared
to other countries such as hina (1,014 kg) and apan (24 kg), which
indicates significant potential for growthR
‡Y ousing, infrastructure and industrial and commercial construction are
expected to be the key drivers for future growthR The Union Budget
substantially stepped up allocation for many infrastructure sectors over the
budget estimates for the previous year, especially for the ational ighways
Development Program (DP), awaharlal ehru ational Urban Renewal
Mission ( URM) and Vccelerated Power Development and Reform
Program (VPDRP)R
‡Y Demand for housing, which accounts for the largest share of the total
domestic demand for cement in India, is set to grow rapidly due to
increasing urbanization, rising number of households and growing
employmentR Vccording to the Eleventh Plan, the demand for housing in
India is estimated to increase from more than24 million units in 2007 to over
2 million units by the end of the Plan periodR
‡Y Infrastructure projects such as D
as well as upgraded and Greenfield
airports and ports are expected to step up construction activity, thereby
leading to a surge in the demand for cement

cc  ! &  
)c  

!"
‡Y The housing segment is expected to be a key demand generator for the
cement industry, considering the intensive demand the segment is currently
witnessingR
‡Y Vccording to the Eleventh
ive Year Plan (2007±2012), housing demand is
estimated to increase from more than 24 million units in 2007 to over 2
million units at the end of the Plan periodR
'Y Growing urbanization, an increasing number of households and higher
employment are primarily driving the demand for housingR
‡Y The housing segment accounts for a major portion of the total domestic
demand for cement in IndiaR  
c"
‡Y The Government of India is strongly focusing infrastructure development to
boost the economy¶s growthR
‡Y Infrastructure projects such as the Dedicated
reight orridors (D
s) and
upgraded and Greenfield airports and ports are expected to drive
construction activityR
'Y
urther, upcoming industrial clusters and infrastructure development in
emerging tier-II and tier-III cities are also expected to fuel growth in the
sector 

ccc" 

‡Y The commercial real estate ( RE) segments, comprising retail space, office
space and hotels as well as civil facilities including hospitals, multiplexes
and schools, have been on the rise with a growing economyR
‡Y Service sectors such as telecom and financial services, as well as the IT/ITeS
sector (which accounts for the maximum commercial office space in the
country) are growingR
‡Y Manufacturing sectors (pharmaceuticals, biotechnology, and automotives)
and fast moving consumer goods (
M G) are likely to drive the demand for
office space 

c  " 

‡Y Government initiatives are expected to provide impetus to construction
activity in rural and semi-urban areas through large infrastructure and
housing development projectsR
‡Y Vccording to the Eleventh Plan, the Government of India intends to
substantially augment railway capacity and facilities for handling and
storage to ease the transportation of cement and further reduce its
transportation costsR
‡Y The industry is also focusing on the modernization of trade through high-end
technology adoption and low energy consumption, which is comparable with
the best in the worldR
‡Y The demand for cement in India is expected to increase in the long run, since
fundamental growth drivers of the economy, such as infrastructure, trade and
per capita income, are intactR

 " 

The cement industry is likely to record an annual growth of over 10% in the
coming years on the back of higher domestic demandR Domestic cement demand is
expected to remain strong, given the revival in the housing sector and continued
Government spending on infrastructureR
The cement industry in spite of facing many problems is utilizing the capacity of
80 % average to meet the demandR
The cement industry is a cyclical commodity industry where the profit and return
on capital is dependent on the demand cycle pictureR
rom the mid 90¶s to 2002-
200! periods, there was an excess of supply and hence prices were depressedR Most
companies had poor to non-existent profits and accordingly the stock prices
sufferedR Since 200!, the demand has increased rapidly and so have the pricesR
Most of top players in the cement industry are able to give good consistent returnsR 
ith the Indian economy growing with strong positive signsR &/+2 /6'0.,
,*0, 4'96+, 3' 6*/ 0'. *+ /,-.+' /. ;46+, + 7 /
-4.1/R 2-.4'.46+/:3-+-'-+5<36*+/,-.+'*0<.0++'06+/:
3'/:.+'.
The strong growth driver increase in cement demand due to this growth drivers,
Government of India spending on infrastructure, Strong market trends and
Economy in growing phase makes ement industry very attractive in the market
but with caution due to increase in raw material pricesR

BIBIGRVPY

wwwRcapitallineRcom
wwwReconomywatchRcom
wwwRibefRorg
wwwRresearchandmarketsRcom
wwwRgrasimRcom
wwwRindiacementsltdRcoRin
wwwRmadrascementsRcom
wwwRgujuratambujaRcom
wwwRultratechRcom
wwwRcmaindiaRorg
wwwRjkcementsRcom