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
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?