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The Ramco Cements on Monday posted a standalone net profit of ₹112.72 crore for the first quarter, a 34 per cent drop year-on-year, due to a spike in input and raw material costs. One of South India’s leading cement manufacturer posted a net profit of ₹168.98 crore for the same quarter in the previous fiscal.
Revenue from operations grew over 44 per cent year-on-year to ₹1,772.49 crore against ₹1,228.67 for the same quarter of the previous fiscal.
Total expenses jumped more than 65 per cent ₹1,625.69 crore (₹984.57 crore) driven by higher cost of materials, transportation & handling charges and power and fuel expenses. Power and fuel expenses jumped 138 per cent to ₹524.37 crore (₹220.65 crore) while cost of materials, including inter-unit clinker transfer - freight and handling went up 62 per cent to ₹286.2 crore (₹177.18 crore).
“EBIDTA for Q1 this fiscal is ₹308 crore against ₹370 crore during Q1 last year with de-growth of 17 per cent, mainly due to sharp increase in fuel price and weak cement prices.The industry could not pass on the full cost increase, arising out of sharp fuel price hike, to its customers,” the company said in a press release.
The average increase in diesel prices by 11 per cent during the quarter resulted in an increase of all in-bound/ out-bound logistics costs. Since the fuel prices have peaked in the Q1, the power & fuel cost per tonne of cement sharply increased to ₹1,584 from ₹1,031 in the Q1 of last year.
The company proposes to expand the capacity of its dry mix products in Tamil Nadu, Odisha and Andhra Pradesh to procure high value products, viz waterproofing, repair products, flooring screeds, including liquid products, besides other regular dry mix products. The two units in Tamil Nadu will be commissioned in FY23 and the remaining two units in Andhra Pradesh and Odisha will be commissioned in FY24.
“During Q1, the company incurred ₹482 crore towards capex, including for the above-mentioned ongoing capacity expansion programme,” the company said.
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