The Ramco Cements has reported net consolidated profit after tax of Rs 72 crore during the quarter ended September 30, 2023. It had registered profit after tax of Rs 3.71 crore 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 2,352.09 crore in Q2 FY24, a growth of 30.63 per cent from Rs 1,800.61 crore it recorded in the similar quarter last year.During Q2 FY24, the sale volume is 4.61 million tons, compared to 3.35 million tons in the Q2 FY23 with a growth of 38%. The cement capacity utilisation for the Q2 FY24 is at 82%.
Cost of raw materials increased by 7% year-on-year from Rs.836 to Rs. 897 per ton for the current quarter due to inflationary impact on procurement cost. During the Q2 FY24, the blended fuel consumption per ton for cement is equivalent to $148 (Cost per Kcal: Rs.1.75) as against $199 (Cost per Kcal: Rs.2.58) during Q2 FY23. The power & fuel cost per ton of cement for Q2 FY24 has decreased from Rs 1,989 in Q2FY23 to Rs 1,358. The current spot CIF prices of pet coke and 4200 GAR coal from Indonesia has come to the level of $138 and $69 respectively.
Even though the fuel prices have come down during the Q2 FY24 for a brief period, the power & fuel cost per ton of cement for Q2 FY24 remain at elevated level due to the higher base effect of the carrying value of the fuel inventory.
Interest cost for the Q2FY24 is Rs.117 crores as against Rs.55 crores during the Q2 FY23. Depreciation for the Q2 FY24 is Rs.157 crores as against Rs.122 crores during the Q2 FY23. The increase of interest & depreciation is due to commissioning of Kolimigundla integrated unit, RR Nagar Line-3 and Dry Mortar Plants in RR Nagar and Salem.
The expansion of grinding plant from 0.9 MTPA to 1.8 MTPA in Orissa are expected to be commissioned during January 2024. Expansion of capacity of dry mix products in Andhra Pradesh & Orissa will be commissioned during December 2023.
During the current quarter, the company acquired limestone-bearing lands in Andhra Pradesh & Karnataka for augmenting its limestone reserves. The company has incurred Rs. 941 crores towards capex including the above land purchase for limestone reserves.
The net debt as on September 30, 2023 is Rs.4,966 crore including working capital borrowings. The average cost of borrowings for Q2 FY24 has increased from 6.35% in FY23 to 7.80% in view of increase in market rates. As on September 30, 2023, its net worth stood at Rs 7,039.81 crore, debt-equity ratio was 0.72, current liability ratio was 23%, total debts to total assets was 32%, operating margin was 18% and net profit margin was 3%.