The Ramco Cements Ltd reported an 18 per cent drop in standalone profit after tax at ₹67 crore for the quarter ended December 31, 2022, compared with ₹83 crore in the year-ago period, due to a rise in expenses led by an increase in power and fuel costs amid growth in cement volumes.
Net revenue grew 30 per cent to ₹2,018 crore compared with ₹1,556 crore in the year-ago period. EBITDA grew 24 per cent to ₹294 crore (₹238 crore).
Total expenses stood at ₹1,921 crore . (₹1,442 crore). Power and fuel costs increased to ₹702 crore, from ₹415 crore.
“Despite an improvement in the average price of cement during the quarter, that could not cover the cost increase since the pet coke/coal prices remained at elevated levels. During the quarter, the transportation cost by rail increased rail by 15 per cent due to the re-imposition of the busy season surcharge from October 1, 2022,” according to a statement.
Blended EBITDA per tonne was ₹823 against ₹790. The operating ratio was at the same level as the year-ago period at 15 per cent.
Its profit before tax fell 14 per cent at ₹97 crore a (₹113 crore).
Cement sale grew 19 per cent to 35.72 lakh tonnes (30.07 lakh tonnes in the year-ago period). Capacity utilisation increased to 70 per cent in Q3FY23, up from 61 per cent in Q3FY22.
During Q3 of this fiscal, the company incurred ₹390 crore towards capex. As on December 31, 2022, the net debt for the company stood at ₹4,556 crore, of which ₹564 crore is a short-term loan.
The capacity utilisation of clinker at the Kolimigundla plant in AP reached 55 per cent during the December 2022 quarter. Of 12 MW WHRS in Kolimigundia, 5 MW was commissioned in November 2022 and another 3 MW will be commissioned during this month. The balance of 4 MW will be commissioned in May this year. A thermal power project of 18 MW and railway siding will be commissioned during the next fiscal. The modernisation of the RR Nagar plant will be completed by the end of this quarter.
Regarding the expansion of capacity of its dry mix products in TN, production has started in one unit in December 2022 and another unit in this month. The remaining two units in AP & Orissa will be commissioned during 2023-24.