Ramco Cements reports 19% growth in FY20 profit

Our Bureau Chennai | Updated on June 19, 2020

Ramco Cements Ltd on Friday reported a 19 per cent increase in its net profit at ₹601 crore for the year ended March 31, 2020, compared with ₹506 crore in the previous fiscal, helped by cost control measures.

Its operating profit was higher at ₹1,174 crore, against ₹1,065 crore in FY18.

The company’s revenue grew 4 per cent at ₹5,406 crore (₹5,175 crore) on the back of a marginal increase in cement sales at 11.2 million tonnes (11.12 mt).

The performance would have been better but for the disruption of operations due to the Covid-19 lockdown imposed in March, said a company statement.

Cement prices were under pressure for the most part of the year. Logistics costs have come down due to a reduction in diesel prices and reduction in lead distances.

The operating cost continued to remain under control in view of benign prices of fuels such as pet coke, coal and diesel during the year. The average pet coke prices dropped by 28 per cent during the year, while average coal prices fell 9 per cent. Diesel prices dropped, too (by 4 per cent). The rupee depreciation has largely offset the fuel price benefits.

Q4 profit falls 12%

For the fourth quarter ended March 31, 2020, the company’s net profit stood at ₹146 crore when compared with ₹165 crore in the year-ago period, a decrease of 12 per cent.

Its revenue fell to ₹1,401 crore from ₹1,543 crore.

Meanwhile, the company completed the expansion of its grinding unit near Visakhapatnam from 0.95 mtpa to 2 mtpa in March 2020. Expansion in Odisha will be completed in August.

Other expansions at units Andhra Pradesh will be completed before the end of this fiscal, said the statement.

The company incurred ₹1,920 crore towards total capex, including a capacity expansion programme in FY20. The balance capex to be incurred will be ₹1,380 crore for its ongoing capacity expansion programme. The capex is proposed to be partly funded through internal accruals and partly through borrowings.

Published on June 19, 2020

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