Chennai-based conglomerate Ramco Cements has reported net profit at Rs 165 crore for the March quarter, a 50% increase from March 2018.
Profits beat analyst estimates in the March quarter, as on average, analysts estimated a profit of around Rs 164 crore and revenue at Rs 1,390 crore.
Quarterly revenue was Rs 1,543 crore, rising 21% from the same quarter last year, and growing 27% sequentially from the December quarter. For the full year, revenue of Rs 5,187 crore for the fiscal year 2019, a 12% increase from the previous year.
Margins came under stress from both fluctuating cement prices and increasing fuel prices as the company posted a 9% fall in the full year profits at Rs 507 crore.
The company’s performance in the year was aided by a 19% increase in quantity of cement sold at 11.12 million tons for the fiscal year, compared to 9.3 million tons in the previous year. Ramco estimates cement demand to grow at around 8% for the upcoming fiscal year 2019-20.
“During the FY 2018-19, the sale volume has grown both in southern and eastern markets due to strong demand in all the segments viz., retail, infrastructure and affordable housing,” Ramco Cements said in a statement.
The company added that despite various cost pressures, the company has been focusing on cost reduction initiatives and improving productivity without compromising on quality.
“The southern part of the country had witnessed 45% deficit in average rain fall so far, which is a worrying factor,” the statement also said.
Profits for the March quarter were impacted by an increase of 24% in ‘other expenditure,’ which includes CSR expenses, contribution to various state relief funds, and contribution to political parties. Other expenses for the full fiscal was Rs 42 crore, out of which Rs 28 crore relates to the March quarter.
Ramco’s board has recommended a dividend of Rs 3 per share for the financial year 2018-19. The shares of the company closed the trading day at Rs 765 on the BSE, down 0.5%