Ramco Cements' Net Profit Drops 51% to Rs.36.57 Cr in Q1 FY25

26 Jul 2024 CW Team

Ramco Cements has announced a significant drop in its net profit for the first quarter of FY25, falling by 51% to ?36.57 crore. This decline marks a sharp contrast to the company's previous financial performance and reflects a challenging period for the cement industry.

The decrease in profit is attributed to a combination of factors, including rising raw material costs and increased operational expenses. The company faced higher input costs due to inflationary pressures and supply chain disruptions, which impacted its overall profitability.

Despite the profit slump, Ramco Cements reported a steady revenue growth, driven by strong sales volumes in both the domestic and international markets. The company's revenue for the quarter remained robust, supported by its ongoing investments in capacity expansion and technological upgrades.

Ramco Cements has been focusing on enhancing its operational efficiency and exploring new markets to counteract the rising costs and competitive pressures. The company?s management is optimistic about recovering from this dip, citing ongoing initiatives to streamline operations and improve cost management.

Looking ahead, Ramco Cements plans to continue investing in its core operations and explore strategic partnerships to boost its market position. The company is committed to navigating the current challenges and expects a gradual improvement in profitability as market conditions stabilise and cost pressures ease.

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