Ramco Cements records highest ever quarterly profit of Rs.236 crore (40% increase over the year ago quarter)

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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 ₹236 crore for the quarter
ended September 30, 2020 compared to ₹168 crore in the year-ago
period, registering an increase of 40 per cent.
Ramco Cement’s revenue (net of GST) fell 5 per cent at ₹1,265 crore
as against ₹1,326 crore 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 ₹450 crore
as against ₹304 crore in the year-ago quarter on account of improved
margins.
Blended EBIDTA per tonne for the quarter ended September 30, 2020
was ₹2,035 as against ₹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 ₹685 crore in
the ongoing expansion and the balance capex is ₹881 crore 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.