Companies

Ramco Cements’ Q1 net zooms to Rs 192 crore

Our Bureau Chennai | Updated on August 07, 2019 Published on August 07, 2019

AV Dharmakrishnan, CEO, Ramco Cements   -  Bijoy Ghosh

Ramco Cements Ltd has reported a 54 per cent increase in net profit at ₹192 crore for the quarter ended June 30when compared with ₹125 crore in the year-ago period, on the back of a strong operating performance.

Its operating profit grew 44 per cent at ₹367 crore, which is the highest-ever in a quarter, as against ₹255 crore in the year-ago quarter.

“Better price realisations, cost control and premium branding of cement were the key drivers for Q1 performance. We intend to maintain this level of performance in the coming quarters as well,” AV Dharmakrishnan, Chief Executive Officer of the company, told BusinessLine.

The company’s revenue (net of excise) grew 14 per cent at ₹1,392 crore( ₹1,225 crore). Domestic sale of cement grew marginally to 26.48 lakh tonnes (25.77 lakh tonnes). Export sales were at 0.55 lakh tonnes (0.37 lakh tonnes).

Coal and pet coke prices softened during the quarter. In the fuel mix, pet coke usage was reduced to 42 per cent as against 62 per cent in the year-ago quarter.

Dharmakrishnan said the company’s focus on right cement for right application approach was paying dividends as the response from customers was very encouraging. Supported by its in-house R&D team, Ramco Cements has come out with 11 varieties of cement to meet the varied demands of customers.

“We will stay focused on customer service, brand building and developing niche markets while maintaining quality standards,” he added.

Ramco Cements’ capacity expansions at various sites are progressing well and the company is confident of increasing its capacity to 20 MTPA by the end of 2020. It plans to meet the capex largely through internal accruals and the balance through debt.

Published on August 07, 2019
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