Ramco Cements Ltd has reported a 55 per cent jump in net profit for the second quarter of the current year on the strength of performance efficiency and cost control.

The company has reported a net profit of ₹138.72 crore (₹89.71 crore) on a total revenue of ₹893.92 crore (₹953.83 crore) for the quarter ended September 30, 2015.

Cement sales during the quarter was 17.11 lakh tonnes (19.43 lakh tonnes).

Finance costs have dropped to ₹45.26 crore (₹47.99 crore); power and fuel costs are down at ₹135.77 crore (₹185.19 crore); transportation and handling costs down ₹155.60 crore (₹202.73 crore).

AV Dharmakrishnan, CEO, said the investments in company infrastructure to strengthen its systems and processes, focus on cost control and debt reduction have contributed to the jump in net profit. These benefits will continue to accrue in the coming quarters, he asserted.

The company is also replacing high cost debt and has raised NCDs for ₹300 crore and a similar exercise is in the offing. It will bring down borrowings and interest costs. Long term borrowings at the end of the second quarter are down to ₹1,342.39 crore (₹1,710.02 crore), he said.

Ramco Cements is well positioned to reap the benefits of increased demand for cement once the States and Centre start investments in physical infrastructure, Dharmakrishnan said.

The company has informed the BSE that it will seek shareholders’ approval to issue debentures up to ₹500 crore to prepay or substitute borrowings and to meet general corporate purpose.

On the BSE, the company’s shares of ₹ 1 closed higher at ₹ 373.75 against the previous close of ₹367.40.

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