The Ramco Cements has reported a dip of 31.94 per cent in its consolidated net profit during the quarter ended December 31, 2022. Its profit after tax (PAT) stood at Rs 51.21 crore in Q3 FY23 as against Rs 75.24 crore it registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing.
Company said its profitability has impacted due to sharp increase in fuel prices. “Despite there being an improvement in average price of cement during the quarter, it could not cover the cost increase since the pet coke/coal prices remain at elevated levels. During the quarter, the transportation cost by rail has increased by 15% due to re-imposition of busy season surcharge with effect from August 1, 2022. Since the coal and pet coke prices have peaked during the calendar year (CY), the power & fuel cost per ton of cement for Q3 of CY has increased to Rs 1,966 from Rs 1,380 in the Q3 of previous year (PY),” the company said in a media release.
The company’s consolidated total income stood at Rs 2,020.37 crore in Q3 FY23, a growth of 29.63 per cent from Rs 1,558.69 crore it recorded in the similar quarter last year.
In spite of all such challenges, the company said that it is keeping its focus firm on critical business parameters such as improvement of EBIDTA per ton, premiumisation of products, productivity, increased capabilities in R& D, completion of capacity expansions amid navigating the headwinds.
During Q3 of the CY, the sale of cement is 3.57 million tons, compared to 3.01 million tons in the Q3 of the previous year with a growth of 19%, it said in the media release.
Interest cost for the Q3 of CY is Rs 61 crore as against Rs 25 crore during the Q3 of PY. Depreciation for the Q3 of CY is Rs 136 crore as against Rs 99 crore during the Q3 of PY. The increase in interest & depreciation is due to commissioning of Jayanthipuram Line III and Kolimigundla.
The capacity utilisation of clinker at Kolimigundla plant in Andhra Pradesh has reached to 55% during the quarter, it said. Out of 12 MW WHRS in Kolimigundla, 5 MW was commissioned in November 2022; another 3 MW will be commissioned in Februay 2023 and balance 4 MW will be commissioned in May 2023.
TPP of 18 MW and railway siding will be commissioned in 2023-24. The modernisation of RR Nagar plant will be commissioned before March 2023, the company said.
With regard to expansion of capacity of its dry mix products in Tamil Nadu, production has started in one unit in December 2022 and another unit in February 2023. The remaining two units in Andhra Pradesh & Odisha will be commissioned during 2023-24.
As of December 31, 2022, the company’s net worth stood at Rs 6,722.69 crore, debt equity ratio was 0.69, total debts to total assets was 33 per cent, operating margin was 14 per cent and net profit margin was 3 per cent, it said in the regulatory filing.
Ramco Cements’ capital expenditure during Q3 FY23 was Rs 390 crore while for nine months of FY23 it was Rs 1,376 crore, it said in the investor presentation.
