India’s UltraTech Cement has announced that it will be restricting its capital expenditure plans to INR10bn (US$132.42m) during the current fiscal year, following the disruptions caused by the COVID-19 pandemic.
"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," said the company in a regulatory filing. "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 continued.
The company also noted that work on the 2.2Mta grinding unit in Cuttack, Odisha, which was scheduled for commissioning in March 2021, has been slowed down by the disruptions. However, brownfield capacity construction at the West Bengal and Bihar grinding units is coming to an end and should still be commissioned by March 2021.
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