The Ramco Cements Ltd on Thursday reported a 50.82 per cent decline in its consolidated net profit to Rs 36.57 crore in the June 2024 quarter due to a fall in cement prices and weak demand amid the Lok Sabha polls.
The company posted a net profit of Rs 74.36 crore during the April-June quarter of the previous fiscal, The Ramco Cements said in a regulatory filing.
Its revenue from operations fell 6.81 per cent to Rs 2,093.55 crore during the quarter under review against Rs 2,246.66 crore a year ago.
The decline in net revenue for the Q1 FY25 is “due to drop in cement prices by around 8 per cent”, a company’s earning statement said.
Moreover, the cost of raw materials “increased by 9 per cent YoY (Year-on-Year) from Rs 911 to Rs 990 per tonne for the current year due to inflationary impact on procurement cost”, it added.
Its total expenses in the June quarter were Rs 2,054.11 crore, down 4.3 per cent.
“During Q1 FY25, the sale volume is 4.36 million tonnes, compared to 4.30 million tonnes in Q1 FY24 with a marginal growth of 1 per cent in view of weak demand amid general elections. The cement capacity utilisation for the Q1 FY25 is at 77 per cent,” the earning statement said.
The Ramco Cements’ total income declined 6.75 per cent to Rs 2,101.65 crore during the quarter.
In the first quarter of FY25, the company has incurred Rs 281 crore towards it, including maintenance capex. The capex guidance for FY25 is estimated to be at Rs 1,200 crore, including maintenance capex, it said.
“By Mar-26, the company is on track to achieve cement capacity of 30 MTPA by the commissioning of 2nd line in Kolimigundla along with de-bottlenecking of existing facilities and adding grinding capacities in existing locations with minimal capex,” it said.
The net debt of the company is Rs 4,975 crore as of June 30, 2024.
Shares of The Ramco Cements Ltd settled 1.48 per cent lower at Rs 800.20 apiece on the BSE.
