Companies

Ramco Cements’ net falls 18% on cost, price pressures

Our Bureau Chennai | Updated on January 29, 2019 Published on January 29, 2019

Ramco Cements Ltd has reported an 18-per cent fall in its net profit at ₹101 crore for the quarter ended December 31, 2018 when compared with ₹123 crore in the year-ago period, on the back of pressures on costs and cement prices.

Though the company’s revenue (net of excise duties and taxes) increased by 15 per cent to ₹1,217 crore (₹1,062 crore) on higher cement sales in the domestic market at 26.89 lakh tonnes (22.43 lakh tonnes), its operating profit fell to ₹221 crore (₹240 crore).

Expenses on the rise

Total expenses were higher at ₹1,085.5 crore (₹910 crore), mainly due to an increase in costs of transportation and fuel.

For the nine month period ended December 31, 2018, net profit stood at ₹341 crore as against ₹447 crore logged during the same quarter in the year-ago period.

However, total revenues grew to ₹3,631 crore (₹3,169 crore).

The sale volume of cement increased by 19 per cent during the nine months period.

Higher sales

Though volumes have grown in southern and eastern markets, the realisation has not improved due to pressure on prices and increase in transportation cost due to diesel price increase, according to a statement.

Average diesel price increased by 22 per cent leading to higher transportation cost of both raw materials and finished goods. Power and fuel costs, too, remained high during the 9-month period.

However, during the current quarter, the prices of pet coke and coal have softened and the effect of the same will reflect in the operating cost in the coming quarters.

During the first three-quarters of this fiscal, the company had incurred a capex of about ₹767 crore towards the ongoing capacity expansion at various locations.

Published on January 29, 2019
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