ramco cements: The Ramco Cements Q1 Results: Net profit down 36.4% at Rs 109.23 cr

on Monday it reported a 36.37 percent drop in its consolidated net profit to Rs 109.23 crore for the first quarter ended June 30, due to high fuel prices and weak cement prices. The company had posted a net profit of Rs 171.67 crore during the April-June quarter of the previous fiscal year, The Ramco Cements said in a regulatory filing.

Total income rose 44 percent to 1,785.64 crore during the reporting quarter from Rs 1,240 crore in the corresponding period of the previous fiscal year.

“EBIDTA for Q1 is Rs 308 crore versus Rs 370 crore during Q1 last year with 17 percent de-growth mainly due to a sharp increase in fuel price and weak cement prices. The industry was unable to pass on the full cost increase as due to a sharp increase in the price of fuel for its customer,” the company said in a statement.

During the first quarter, cement sales were 3.31 million tons, compared to 2.14 million tons in the corresponding quarter, which was impacted by the second wave of the pandemic.

Total costs increased by 64.96 per cent to Rs 1,630.59 crore in Q1 FY2022-23 from Rs 988.46 crore a year ago.

“The average increase in diesel prices of 11 percent during the first quarter led to an increase in all inbound and outbound logistics costs,” it said, adding “during the first quarter, the average price of pet coke increased by 90 percent compared to the corresponding quarter.

In Outlook, The Ramco Cements said it is proposing to expand the capacity of its dry mix products in Tamilnadu, Orissa and Andhra Pradesh to produce high-quality products, namely waterproofing, repair products and floor screeds.

“The two units in Tamil Nadu will be commissioned in FY23 and the remaining two units in Andhra Pradesh and Orissa will be commissioned in FY24,” it said.

Shares of The Ramco Cements Ltd on Monday cabinet at Rs 745.50 each on BSE, up 1.66 per cent from the previous close.

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