Ramco Cements Ltd on Monday reported a 36.37 per cent decline in its consolidated net profit to Rs 109.23 crore for the first quarter ended June 30, on account of high fuel prices and weak cement prices.
The company had posted a net profit of Rs 171.67 crore during the April-June quarter of the previous fiscal, The Ramco Cements said in a regulatory filing.
Its total income rose 44 per cent to 1,785.64 crore during the quarter under review against Rs 1,240 crore in the corresponding period of the previous fiscal.
“EBIDTA for Q1 is Rs 308 crore as against Rs 370 crore during Q1 of last year with de-growth of 17 per cent, mainly due to a sharp increase in fuel price and weak cement prices. The industry could not pass on the full cost increase arising out of sharp fuel price hike to its customer,” said an earning statement by the company.
During Q1, the sale of cement was 3.31 million tonne compared to 2.14 million tonne in the corresponding quarter, which was impacted by the second wave of the pandemic.
Its total expenses increased 64.96 per cent to Rs 1,630.59 crore in Q1 FY2022-23 from Rs 988.46 crore a year ago.
“The average increase in diesel prices by 11 per cent during the Q1 has resulted in an increase of all in-bound/out-bound logistics cost,” it said, adding “during the Q1, the average price of pet coke has increased by 90 per cent compared” to the corresponding quarter.
On Outlook, The Ramco Cements said it proposes to expand the capacity of its dry mix products in Tamilnadu, Orissa and Andhra Pradesh to produce high-value products viz waterproofing, repair products, and flooring screeds, among others.
“The two units in Tamil Nadu will be commissioned in FY23 and the remaining two units in Andhra Pradesh & Orissa will be commissioned in FY24,” it said.
Shares of The Ramco Cements Ltd on Monday closet at Rs 745.50 apiece on BSE, up 1.66 per cent from the previous close.
