Ramco Cements records highest ever quarterly profit
Cement

Ramco Cements records highest ever quarterly profit

The Ramco Cements registered its highest-ever net profit, best-ever EBITDA and EBITDA per tonne during the September quarter of this fiscal helped by better prices and cost control measures, despite a drop in volumes. 

The company’s profit after tax stood at Rs 2.36 billion for the quarter ended September 30, 2020 compared to Rs 1.68 billion in the year-ago period, registering an increase of 40 per cent.
Ramco Cement’s revenue (net of GST) fell 5 per cent at Rs 12.65 billion as against Rs 13.26 billion in the year-ago period due to lower volumes. Its sales dropped by 19 per cent to 22.13 lakh tonnes (27.24 lakh tonnes). However, its EBITDA increased by 48 per cent at Rs 4.50 billion as against Rs 3.04 billion in the year-ago quarter on account of improved margins.

Blended EBIDTA per tonne for the quarter ended September 30, 2020 was Rs 2,035 as against Rs 1,118 in the year-ago quarter. Stability in cement prices, improved sale of its flagship products and premium products in the trade segment have played out well for the overall improvement of realisations.

Also, the variable cost came down due to lower fuel cost and improvement in blending ratio. The fuel procured in the earlier quarters has helped to keep a check on overall fuel cost during the current quarter, while the market prices of pet coke and coal have witnessed a sharp increase during the September quarter.

The sale was impacted mainly because of lockdown, restricted access in containment zones, and unusually heavy rains in Kerala, Karnataka, Andhra Pradesh and Telangana during August and September 2020. Even though the company has grown in eastern markets, heavy rains affected the growth rate. However, the demand is expected to pick up in the coming quarters.

During H1 of this fiscal, the company incurred a capex of Rs 6.85 billion in the ongoing expansion and the balance capex is Rs 8.81 billion for the same expansion.
“Our robust R&D process and relentless marketing efforts have fostered in development of niche markets for premium products in line with our strategy of right products for the right applications, which have achieved tremendous acceptance from its customers graduating the company from a cement maker to a complete cement solutions provider,” said AV Dharmakrishnan, Chief Executive Officer, Ramco Cements.

The Ramco Cements registered its highest-ever net profit, best-ever EBITDA and EBITDA per tonne during the September quarter of this fiscal helped by better prices and cost control measures, despite a drop in volumes. The company’s profit after tax stood at Rs 2.36 billion for the quarter ended September 30, 2020 compared to Rs 1.68 billion in the year-ago period, registering an increase of 40 per cent.Ramco Cement’s revenue (net of GST) fell 5 per cent at Rs 12.65 billion as against Rs 13.26 billion in the year-ago period due to lower volumes. Its sales dropped by 19 per cent to 22.13 lakh tonnes (27.24 lakh tonnes). However, its EBITDA increased by 48 per cent at Rs 4.50 billion as against Rs 3.04 billion in the year-ago quarter on account of improved margins.Blended EBIDTA per tonne for the quarter ended September 30, 2020 was Rs 2,035 as against Rs 1,118 in the year-ago quarter. Stability in cement prices, improved sale of its flagship products and premium products in the trade segment have played out well for the overall improvement of realisations.Also, the variable cost came down due to lower fuel cost and improvement in blending ratio. The fuel procured in the earlier quarters has helped to keep a check on overall fuel cost during the current quarter, while the market prices of pet coke and coal have witnessed a sharp increase during the September quarter.The sale was impacted mainly because of lockdown, restricted access in containment zones, and unusually heavy rains in Kerala, Karnataka, Andhra Pradesh and Telangana during August and September 2020. Even though the company has grown in eastern markets, heavy rains affected the growth rate. However, the demand is expected to pick up in the coming quarters.During H1 of this fiscal, the company incurred a capex of Rs 6.85 billion in the ongoing expansion and the balance capex is Rs 8.81 billion for the same expansion.“Our robust R&D process and relentless marketing efforts have fostered in development of niche markets for premium products in line with our strategy of right products for the right applications, which have achieved tremendous acceptance from its customers graduating the company from a cement maker to a complete cement solutions provider,” said AV Dharmakrishnan, Chief Executive Officer, Ramco Cements.

Next Story
Infrastructure Transport

Modi Launches Rs 318.5 Billion Projects in Maharashtra

Prime Minister Narendra Modi on Wednesday launched infrastructure projects worth Rs 318.5 billion during his two-day visit to Maharashtra, including two landmark developments — the first phase of the Rs 196.5 billion Navi Mumbai International Airport (NMIA) and the second phase of the Rs 122 billion Mumbai Metro Line 3. India’s first fully digitised airport, NMIA, has been designed for multimodal connectivity and is being developed under a public-private partnership between Adani Airport Holdings, which holds a 74 per cent stake, and the City and Industrial Development Corporation of Maha..

Next Story
Real Estate

Tata Housing Sells Rs 10 Billion Homes in Bengaluru

Real estate developer Tata Housing on Wednesday announced that it has achieved home sales worth over Rs 10 billion in its newly launched residential project in Bengaluru, driven by strong demand. In a statement, the company said Tata Housing Varnam Phase I — part of the 135-acre integrated township Carnatica in North Bengaluru — has surpassed Rs 10 billion in sales since its launch in August 2025. Spread across 20 acres, Varnam Phase I has recorded sales of 377 units out of 582 apartments, along with 48 townhouses and row houses. The project has attracted substantial interest from both e..

Next Story
Infrastructure Transport

OMRON to Train 1,000 Graduates Annually at Bengaluru Centre

Japanese industrial automation giant OMRON announced on Wednesday that it will train and skill 1,000 fresh engineering graduates annually at its newly launched Automation Centre in Bengaluru. The initiative aims to enhance India’s employable manufacturing talent and build a resilient, future-ready industrial ecosystem. Motohiro Yamanishi, President of the Industrial Automation Company at OMRON Corporation, said, “We see immense potential in the dynamism of India’s manufacturing sector. The new Automation Centre underscores India’s vital role in our global and Asia-Pacific vision. It i..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?