Ramco Cements Q2 FY22 results: Net profit at Rs 519.12 crore
Cement

Ramco Cements Q2 FY22 results: Net profit at Rs 519.12 crore

In the second quarter of FY22, Ramco Cements has reported a consolidated net profit of Rs 519.12 crore, up from Rs 238.92 crore in Q2 FY21. In the second quarter of FY22, the company's net consolidated total revenue was Rs 1,510.33 crore, up 18.6% from Rs 1,273.47 crore in the same quarter last year.

The company allotted 1,02,766 equity shares of Re 1 each during the quarter ended September 2021. As a result, the company's paid-up equity share capital has grown from 23,58,89,945 of Rs 1 equity shares to 23,59,92,711 of Rs 1 equity shares.

According to the regulatory filing, the company's debt-to-equity ratio was 0.55, its net worth was Rs 6,434.78 crore, its current liability ratio was 24%, its operating margin was 27%, and its net profit margin was 34% as of September 30, 2021.

Cement sales increased by 23% in Q2 FY22, from 2.21 million tonnes the previous year to 2.71 million tonnes this year. Based on clinker capacity, the utilisation rate for Q2 is 74%, up from 70% in Q2 last year, according to the company.

Due to the heavy monsoon, cement demand in eastern markets was affected during the current quarter. Also in the Southern market, due to weekend lockouts and heavy monsoons in the current quarter, cement demand in Kerala has slowed.

The current quarter's average increase in diesel prices of 20% has increased inbound/outbound logistics costs. The cost of power and fuel per tonne of cement in Q2 increased to Rs 1057 from Rs 823 in the previous quarter.

On September 21, the spot market price of pet coke increased to $250 CIF, and the price of imported coal from Australia increased to $220.

Ramco Cements said that its Kurnool project has been delayed for the past 21 months due to the disruption of the workforce caused by Covid-19. The 2.25 mtpa clinkering unit in Kurnool is expected to be operational in Q4 of FY22.

Ramco Cements also plans to expand its dry mix product capacity in Tamil Nadu, Odisha, and Andhra Pradesh for a total investment of Rs 160 crore to produce high-value products such as waterproofing, repair products, and flooring screeds, as well as other dry-mix products.

The company spent Rs 902 crore on capital expenditure between April 21 and September 21, including for the aforementioned ongoing capacity expansion programme.

Image Source

Also read: Ramco Cements’ Q4 results: Net profit jumps to Rs 216 cr in FY21

In the second quarter of FY22, Ramco Cements has reported a consolidated net profit of Rs 519.12 crore, up from Rs 238.92 crore in Q2 FY21. In the second quarter of FY22, the company's net consolidated total revenue was Rs 1,510.33 crore, up 18.6% from Rs 1,273.47 crore in the same quarter last year. The company allotted 1,02,766 equity shares of Re 1 each during the quarter ended September 2021. As a result, the company's paid-up equity share capital has grown from 23,58,89,945 of Rs 1 equity shares to 23,59,92,711 of Rs 1 equity shares. According to the regulatory filing, the company's debt-to-equity ratio was 0.55, its net worth was Rs 6,434.78 crore, its current liability ratio was 24%, its operating margin was 27%, and its net profit margin was 34% as of September 30, 2021. Cement sales increased by 23% in Q2 FY22, from 2.21 million tonnes the previous year to 2.71 million tonnes this year. Based on clinker capacity, the utilisation rate for Q2 is 74%, up from 70% in Q2 last year, according to the company. Due to the heavy monsoon, cement demand in eastern markets was affected during the current quarter. Also in the Southern market, due to weekend lockouts and heavy monsoons in the current quarter, cement demand in Kerala has slowed. The current quarter's average increase in diesel prices of 20% has increased inbound/outbound logistics costs. The cost of power and fuel per tonne of cement in Q2 increased to Rs 1057 from Rs 823 in the previous quarter. On September 21, the spot market price of pet coke increased to $250 CIF, and the price of imported coal from Australia increased to $220. Ramco Cements said that its Kurnool project has been delayed for the past 21 months due to the disruption of the workforce caused by Covid-19. The 2.25 mtpa clinkering unit in Kurnool is expected to be operational in Q4 of FY22. Ramco Cements also plans to expand its dry mix product capacity in Tamil Nadu, Odisha, and Andhra Pradesh for a total investment of Rs 160 crore to produce high-value products such as waterproofing, repair products, and flooring screeds, as well as other dry-mix products. The company spent Rs 902 crore on capital expenditure between April 21 and September 21, including for the aforementioned ongoing capacity expansion programme. Image Source Also read: Ramco Cements’ Q4 results: Net profit jumps to Rs 216 cr in FY21

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