Ultratech Cement to raise Rs. 9,000 Cr
UltraTech’s net debt at the end of March 2018 stood at Rs 12,007 crore and net debt Ultratech Cement to raise ` 9,000 Cr to EBITDA ratio at 1.85x. It increased to Rs 17,000 crore after it announced the Century acquisition, pulling up its leverage to 2.35x. KK Maheshwari, UltraTech’s MD, said that with the company generating cash every year, the leverage was within comfort levels.
However, if it is successful in acquiring Binani for which it has bid close to Rs 8,000 crore, its leverage is bound to cross 3x. “This is okay in the short term, but if cement prices do not improve pulling up the EBITDA, the leverage will become a cause of worry,” said Prateek Kumar, cement analyst at Antique Stock Broking.
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