The Ramco Cements has reported a dip of 64.21 per cent in its net consolidated profit during the quarter ended September 30, 2024. It recorded profit after tax of Rs 25.77 crore in Q2 FY25 as against Rs 72 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 2,053.94 crore in Q2 FY25, a dip of 12.68 per cent from Rs 2,352.09 crore it reported in the similar quarter last year.
As on September 30, 2024, its net worth stood at Rs 7,242.10 crore, debt-equity ratio was 0.72, current liability ratio was 23%, total debts to total assets was 32%, operating margin was 16% and net profit margin was 1%.During Q2FY25, the total sale volume (including building products) is 4.49 million tons, compared to 4.61 million tons in Q2FY24 with de-growth of 3% in view of weak demand due to monsoon. The cement capacity utilisation has dropped from 82% in Q2FY24 to 75% in Q2FY25 due to additional capacities created by way of debottlenecking in Q2FY25 and commissioning of line 2 in Orissa in H2FY24.
Cost of raw materials per ton increased marginally by 1% year-on-year from Rs 897 to Rs 903 for the current quarter due to inflationary impact on procurement cost. During Q2 FY25, the blended fuel consumption per ton of cement is equivalent to $130 as against $148 during Q2 FY24. The power & fuel cost per ton of cement for Q2 FY25 has decreased to Rs 1,121 compared to Rs 1,358 in Q2 FY24. The change in utility of sale of wind power to captive use has helped to reduce the overall power cost and resultantly, the green power usage has improved from 38% in Q2 FY24 to 39% in Q2 FY25. The current spot CIF prices of pet coke is around $94 to $95.
The cement capacity has been increased from 23 MTPA to 24 MTPA during Q2FY25 at the cost of $8 per ton through de-bottlenecking in Kolimigundla Integrated Unit and Salem Grinding Unit. The company is on track to achieve cement capacity of 30 MTPA by Mar 2026.
The company has monetized Rs 376 crore out of targeted value of Rs 1,000 crore of non-core assets. Further, the company has entered into a sale agreement for disposal of lands worth Rs 74 crore, which is expected to be realized during Q3 FY25 and there is a good progress in respect of sale of other lands.
The net debt as on September 30, 2024 is Rs 5,103 crore with an annualized net debt to EBIDTA of 3.95 times. The cost of debt for Q2 FY25 is 7.96% as against 7.80% in Q2 FY24. The company repaid Rs 326 crore of its debt in October 24 using proceeds from the disposal of non-core assets.
