The Ramco Cements Ltd has reported a significant increase in net profit at ₹101 crore for the quarter ended September 30, 2023, compared with a net profit of ₹11 crore in the year-ago period. 

The increase in profit was supported by higher volume and lower cost inspite of pressure on prices because of competition, AV Dharmakrishnan, CEO of the company, told businessline.

EBIDTA increased by 114 per cent to ₹412 crore against ₹193 crore, mainly due to a drop in fuel prices. During Q2, blended fuel consumption per tonne of cement was equivalent to $148 (cost per Kcal: ₹1.75) as against $199 (cost per Kcal: ₹2.58) during Q2FY23. The power & fuel cost per tonne decreased to ₹1,358 from ₹1,989.

The cost of raw materials rose 7 per cent y-o-y from ₹836 to ₹897 per tonne in Q2 due to the inflationary impact on procurement costs. Blended EBIDTA per tonne was ₹894 against ₹575 during Q2FY23.

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The change in utility of the sale of wind power to captive use has also helped to reduce the overall power cost. Even though the fuel prices came down in Q2FY24 for a brief period, the power & fuel cost per tonne of cement for Q2FY24 remained at an elevated level due to the higher base effect of the carrying value of the fuel inventory, according to a statement.

Net revenue of the company grew 31 per cent at ₹2,343 crore (₹1,793 crore), aided by a 38 per cent increase in cement sales at 4.61 million tonnes (3.35 million tonnes).

The company’s cement capacity utilisation in the September quarter stood at 82 per cent.

In Q2 of this fiscal, Ramco Cements bought limestone-bearing lands in Andhra Pradesh & Karnataka to augment its limestone reserves. It incurred a capex of ₹941 crore, including the above land purchase for limestone reserves in the September 2023 quarter.

As of September 30, 2023, the net debt of the company was ₹4,966 crore including working capital borrowings.


Cement price improvement from Oct 2023 coupled with the current level of fuel price are expected to have a positive impact on the operating margins in the upcoming quarters, said the company.