Ramco Cements records highest ever quarterly profit
Cement

Ramco Cements records highest ever quarterly profit

The Ramco Cements registered its highest-ever net profit, best-ever EBITDA and EBITDA per tonne during the September quarter of this fiscal helped by better prices and cost control measures, despite a drop in volumes. 

The company’s profit after tax stood at Rs 2.36 billion for the quarter ended September 30, 2020 compared to Rs 1.68 billion in the year-ago period, registering an increase of 40 per cent.
Ramco Cement’s revenue (net of GST) fell 5 per cent at Rs 12.65 billion as against Rs 13.26 billion in the year-ago period due to lower volumes. Its sales dropped by 19 per cent to 22.13 lakh tonnes (27.24 lakh tonnes). However, its EBITDA increased by 48 per cent at Rs 4.50 billion as against Rs 3.04 billion in the year-ago quarter on account of improved margins.

Blended EBIDTA per tonne for the quarter ended September 30, 2020 was Rs 2,035 as against Rs 1,118 in the year-ago quarter. Stability in cement prices, improved sale of its flagship products and premium products in the trade segment have played out well for the overall improvement of realisations.

Also, the variable cost came down due to lower fuel cost and improvement in blending ratio. The fuel procured in the earlier quarters has helped to keep a check on overall fuel cost during the current quarter, while the market prices of pet coke and coal have witnessed a sharp increase during the September quarter.

The sale was impacted mainly because of lockdown, restricted access in containment zones, and unusually heavy rains in Kerala, Karnataka, Andhra Pradesh and Telangana during August and September 2020. Even though the company has grown in eastern markets, heavy rains affected the growth rate. However, the demand is expected to pick up in the coming quarters.

During H1 of this fiscal, the company incurred a capex of Rs 6.85 billion in the ongoing expansion and the balance capex is Rs 8.81 billion for the same expansion.
“Our robust R&D process and relentless marketing efforts have fostered in development of niche markets for premium products in line with our strategy of right products for the right applications, which have achieved tremendous acceptance from its customers graduating the company from a cement maker to a complete cement solutions provider,” said AV Dharmakrishnan, Chief Executive Officer, Ramco Cements.

The Ramco Cements registered its highest-ever net profit, best-ever EBITDA and EBITDA per tonne during the September quarter of this fiscal helped by better prices and cost control measures, despite a drop in volumes. The company’s profit after tax stood at Rs 2.36 billion for the quarter ended September 30, 2020 compared to Rs 1.68 billion in the year-ago period, registering an increase of 40 per cent.Ramco Cement’s revenue (net of GST) fell 5 per cent at Rs 12.65 billion as against Rs 13.26 billion in the year-ago period due to lower volumes. Its sales dropped by 19 per cent to 22.13 lakh tonnes (27.24 lakh tonnes). However, its EBITDA increased by 48 per cent at Rs 4.50 billion as against Rs 3.04 billion in the year-ago quarter on account of improved margins.Blended EBIDTA per tonne for the quarter ended September 30, 2020 was Rs 2,035 as against Rs 1,118 in the year-ago quarter. Stability in cement prices, improved sale of its flagship products and premium products in the trade segment have played out well for the overall improvement of realisations.Also, the variable cost came down due to lower fuel cost and improvement in blending ratio. The fuel procured in the earlier quarters has helped to keep a check on overall fuel cost during the current quarter, while the market prices of pet coke and coal have witnessed a sharp increase during the September quarter.The sale was impacted mainly because of lockdown, restricted access in containment zones, and unusually heavy rains in Kerala, Karnataka, Andhra Pradesh and Telangana during August and September 2020. Even though the company has grown in eastern markets, heavy rains affected the growth rate. However, the demand is expected to pick up in the coming quarters.During H1 of this fiscal, the company incurred a capex of Rs 6.85 billion in the ongoing expansion and the balance capex is Rs 8.81 billion for the same expansion.“Our robust R&D process and relentless marketing efforts have fostered in development of niche markets for premium products in line with our strategy of right products for the right applications, which have achieved tremendous acceptance from its customers graduating the company from a cement maker to a complete cement solutions provider,” said AV Dharmakrishnan, Chief Executive Officer, Ramco Cements.

Next Story
Infrastructure Urban

We operate 100 smart buses serving 30,000 passengers daily

Aurangabad, known as the ‘City of Gates’ owing to its historical monuments and Mughal heritage, is equally renowned for its industrial development, with a nominal gross district domestic product (GDDP) of Rs.988.04 billion. As growth has progressed, there has been a focus on enhancing the standard of living, prompting key initiatives, including the award-winning Majhi Smart  Bus Initiative. G Sreekanth (IAS), CEO, Aurangabad Smart City Development Corporation Ltd (ASCDCL), discusses the city’s ongoing and upcoming developments in conversation  with NEHA YADAV.Recent news h..

Next Story
Infrastructure Energy

Sterling and Wilson Secures Rs 12 Bn Solar EPC Contract in Gujarat

Sterling and Wilson Renewable Energy has been awarded a Rs 1,200 crore contract for a 500-megawatt (MW) solar photovoltaic (PV) project in Gujarat, strengthening its foothold in India’s renewable energy sector. The engineering, procurement, and construction (EPC) contract encompasses the design, engineering, and installation of balance-of-system (BoS) components with single-point responsibility. It also includes operations and maintenance (O&M) services for three years. “We are delighted to secure this significant order, which will aid India, especially Gujarat, in its transition to clean ..

Next Story
Infrastructure Energy

NTPC Green Energy Signs MoU with Bihar Government

NTPC Green Energy (NGEL), a subsidiary of NTPC, has entered into a Memorandum of Understanding (MoU) with the Department of Industries, Government of Bihar, during the Bihar Business Connect 2024 Global Investors’ Summit held on 20 December 2024 in Patna. The MoU outlines plans for substantial investments in Bihar to establish various renewable energy projects, including: Ground-mounted and floating solar installations Battery energy storage systems Green hydrogen mobility initiatives The Bihar Government will assist by facilitating necessary approvals, permissions, registrations, and cleara..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000