The Ramco Cements Q1 Results: Net profit drops 30% to ₹79 crore; revenue rises 26% YoY

The Ramco Cements on Monday reported a 29.7% fall in its standalone net profit for the quarter ended June 2023 at ₹78.91 crore as compared to ₹112.27 crore in the year-ago period.

The company’s standalone revenue from operations in Q1FY24 rose 26.4% to ₹2,241.09 crore from ₹1,772.49 crore, YoY.

Sales volume during the first quarter of FY24 grew 29% to 4.30 million tons compared to 3.34 million tons in the Q1FY23.

The company said that the growth in sales volume could have been better for the current quarter but was impacted by the non-availability of sand in Kerala, supply disruption due to rail accident in Orissa and West Bengal and active monsoon in North East.

The cement capacity utilisation for the Q1FY24 was at 79%.

Also Read: India Cements Q1 Results: Company posts net loss of ₹75.3 crore; revenue drops 3.7% YoY

Earnings before interest, taxes, depreciation and amortization (EBITDA) during the quarter increased 13.3% to ₹341 crore from ₹301 crore, while EBITDA margin declined by 180 basis points (bps) to 15.2% from 17%, YoY.

EBITDA margin was affected due to elevated fuel prices and weak cement prices in the markets where the company operates, The Ramco Cements said in a release.

Blended EBITDA per ton for the Q1FY24 declined to ₹812 from ₹921 during Q1FY23. Operating ratio for Q1FY24 was 16% as against 17%, YoY.

During Q1FY24, the blended fuel consumption per ton for cement was equivalent to $170 (Cost per Kcal: ₹2.03) as against $157 (Cost per Kcal: ₹1.87) during Q1FY23.

“In Kolimigundla, balance 3 MW WHRS will be commissioned in Aug-23, and TPP of 18 MW and railway siding will be commissioned in 2023-24. With regard to expansion of capacity of its dry mix, products in Andhra Pradesh and Orissa will be commissioned during 2023-24,” the company said.

At 2:25 pm, The Ramco Cements share price was trading 2.15% lower at ₹855.25 apiece on the BSE.

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