Ramco Cements’ net profit has more than doubled during the fourth quarter of 2015-16 compared with the corresponding quarter of the previous year.
“Sustained focus on efficiency and costs have contributed to the performance and these measures will have a sustained positive impact,” according to AV Dharmakrishnan, CEO, Ramco Cements.
The company has reported a net profit of ₹ 204.32 crore (₹ 93.42 crore) on a revenue of ₹ 1,017.68 crore (₹ 999.19 crore) for the quarter ended March 31, 2016.
For the year ended March 31, 2016, the company reported 57 per cent jump in net profit over that of the previous year. Its net profit was ₹ 558.26 crore (₹242.35 crore) on a revenue of ₹3,687 crore (₹ 3731.77 crore).
Cement sales during the quarter was 20.85 lakh tonnes (18.80 lakh tonnes) and during the year 72.35 lakh tonnes (76.68 lakh tonnes).
The upward swing observed in the fourth quarter of last year is sustained in the initial months of the current year, Dharmakrishnan said.
The major factor contributing to the performance was that last year the company reduced its borrowings by ₹ 500 crore out of internal accruals and reduction in current assets.
This is continuing with the company repaying about ₹ 145 crore in first two months of the current year. These help to bring down its interest cost which now on an average is about 8.16 per cent. The company’s interest bearing loan now is about ₹ 1,460 crore, he said.
Ramco Cements has paid an interim dividend of ₹ 3 a share of ₹ 1, which is the total dividend. On the BSE the company’s shares closed marginally higher at ₹492.45 over the previous close of ₹ 490.50.