Ramco Cements Q2 Profit Falls 64.2% to Rs 25.8 cr - Business News

New Delhi, Nov 11 (PTI) The Ramco Cements Ltd on Monday reported a 64.2 per cent decline in its consolidated net profit to Rs 25.77 crore for the second quarter ended September 2024 due to lower cement prices in the industry.

The company had posted a net profit of Rs 72 crore during the July-September quarter of the previous fiscal, The Ramco Cements said in a regulatory filing.

Its revenue from operations slipped 12.66 per cent to Rs 2,044.13 crore during the quarter under review. It was Rs 2,340.57 crore in the corresponding period of the previous fiscal.

The "de-growth of 13 per cent (in revenue) is due to a drop in cement prices by around 10 per cent YoY and drop in volume by 3 per cent", the company said in its earnings statement.

The cement capacity utilisation has dropped from 82 per cent in Q2 FY24 to 75 per cent in Q2 FY25, it added.

"During Q2 FY25, the total sale volume (including building products) is 4.49 million tons compared to 4.61 million tons in Q2FY24 with de-growth of 3 per cent in view of weak demand due to monsoon," it said.

Moreover, the cost of raw materials per ton increased marginally by 1 per cent from Rs 897 to Rs 903 for the current quarter due to the inflationary impact on procurement cost, it added.

The total expenses of The Ramco Cements in the September quarter fell 8.8 per cent to Rs 2,019.45 crore.

The Ramco Cements' total income declined 12.67 per cent in the September quarter to Rs 2,053.94 crore.

On Capex, The Ramco Cements said its capacity has been increased from 23 MTPA to 24 MTPA during Q2FY25 through de-bottlenecking in the Kolimigundla Integrated Unit and Salem Grinding Unit.

"The company is on track to achieve cement capacity of 30 MTPA by March 2026 with the commissioning of 2nd line in Kolimigundla along with de-bottlenecking of existing facilities and adding grinding capacities in existing locations with minimal capex," it said.

Shares of The Ramco Cements Ltd on Monday settled at Rs 869.95 on BSE, up 0.44 per cent from the previous close.