Home Business Ramco Cements Q2 net rises nine fold to ₹101 crore

Ramco Cements Q2 net rises nine fold to ₹101 crore


Representational image only.

Representational image only.
| Photo Credit: The Hindu

The Ramco Cements Limited (RCL) standalone net profit for the September quarter grew almost nine-fold, over the period from last year, to ₹101 crore on strong sales volume.

Revenue from operations rose to ₹2,329 crore from ₹1,784 crore. Raw materials cost increased 7% YoY to ₹897 per tonne due to inflationary impact on procurement cost.

Sales volume grew 38% to 4.61 million tonnes, while the capacity utilisation stood at 82%, the leading cement manufacturer said in a statement.

RCL continues to focus on the strategy of right products for right applications to make its brands stronger. The cement prices are under pressure during the current period under review. The reduction in lead distance has resulted in marginal reduction of logistics cost.

The overall green power usage improved to 38% from 22% due to change in utility of wind power to captive purposes. The green power share is likely to reach 40% and 45% by FY24 and FY25 respectively.

Regarding the ongoing projects, RCL said the 18 MW Thermal Power Plant in Kolimigundla will be commissioned by December and railway siding by June 24.

“Expansion of dry mortar plants in Andhra Pradesh & Odisha will be commissioned by December and the expansion of grinding plant from 0.9 MTPA to 1.8 MTPA in Odisha by January 24,” the company said.

RCL acquired limestone-bearing lands in Andhra Pradesh & Karnataka for augmenting its limestone reserves. It incurred a capex of ₹941 crore including the above land purchase. The net debt stood at ₹4,966 crore including working capital borrowings.

“Cement price improvement from October 2023 coupled with current level of fuel price are expected to have positive impact on the operating margins in the upcoming quarters,” the company said.

Source link

Previous articleWipro likely to skip salary hikes for ‘top performers’ in major business line
Next articleBihar Assembly passes bills to hike caste quotas to 65 per cent


Please enter your comment!
Please enter your name here