The Ramco Cements has reported a growth of 27.34 per cent in its net consolidated profit during the quarter ended March 31, 2023. Its profit after tax stood at Rs 150.60 crore in Q4 FY23 as against Rs 118.27 crore it registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing.
The company’s net consolidated total income stood at Rs 2,583.57 crore in Q4 FY23, a growth of 49.97 per cent from Rs 1,722.68 crore it registered in the similar quarter last year.
The board of directors have recommended a dividend of Rs 2 per share of Rs 1 each for the year ended March 31, 2023.
As on March 31, 2023, the company’s net worth stood at 6.686.06 crore, debt-equity ratio was 0.65, total debts to total assets was 31%, operating margin was 16% and net profit margin was 6%.
During Q4 FY23, the sale of cement and dry mortar products was 4.70 million tons, compared to 3.23 million tons in the Q4 FY22 with volume growth of 46%. During FY23, the sale of cement and dry mortar products is 15.02 million tons, compared to 11.14 million tons in the FY22 with a volume growth of 35%.
While the average net realisable price of cement was flat during the year, the elevated prices of petcoke / coal have dented the margins. Further, the transportation cost by rail has increased by 15% due to re-imposition of busy season surcharge w.e.f. 1-10-2022 and increase in diesel price by 3% during FY23 has pushed up the inbound and outbound logistics cost.
During the Q4 FY23, the blended fuel consumption per ton for cement and TPP is equivalent to $178 as against $162 during Q4 FY22. During the FY23, the blended fuel consumption per ton for cement and TPP is equivalent to $177 as against $125 during FY22, amid rupee depreciated by 8% during FY23.
Since the coal and petcoke prices remained at elevated levels during the calendar year, the power & fuel cost per ton of cement for FY23 has increased to Rs 1,796 from Rs 1,257 in the FY22 and it has increased from Rs 1,462 in Q4 FY22 to Rs 1,661 in Q4 FY23.
Interest cost for Q4 FY23 is Rs 77 crore as against Rs 33 crore in Q4 FY22 and the interest cost for the FY23 is Rs 241 crore as against Rs.112 crores during the FY22. Depreciation for Q4 FY23 is Rs 141 crore as against Rs 108 crore in Q4 FY22 and the depreciation for the FY23 is Rs 504 crore as against Rs 401 crore during the FY22. The increase in interest & depreciation is due to commissioning of Jayanthipuram Line-3, integrated plant at Kolimigundla, Line-3 at RR Nagar & Dry Mortar Plants.
The capacity utilisation of clinker at Kolimigundla plant in Andhra Pradesh in Q4 was 83%. Out of 12 MW WHRS in Kolimigundla, eight MW is operational and balance four MW will be commissioned in May 2023. Line-3 in RR Nagar plant with 1 MTPA of clinkering facility was commissioned in March 2023. With regard to expansion of capacity of its dry mix products in four locations, commercial production have started in two locations in Tamil Nadu and the remaining units in Andhra Pradesh & Orissa will be commissioned during 2023-24.
Ramco Cements has incurred Rs 389 crore and Rs 1,765 crores during Q4 FY23 and FY23 respectively for the above-mentioned capacity expansion including regular capital expenditure.
The net debt for the company as on March 31, 2023 is Rs 4,351 crore, out of which Rs 478 crore is for working capital. The net debt to EBITDA for FY23 is 3.57 as against 2.88 in FY22. The average cost of interest-bearing borrowings for the FY23 is increased to 6.35% from 5.22% in FY22, the company said in a media release.
