Ramco Cements second-quarter profit zooms 47 per cent

Ramco Cements Ltd has recorded a significant increase of 47 per cent rise in its profit after tax at ₹168 crore for the quarter ended September 30, compared with ₹114 crore in the year-ago period, on the back of a better operating performance, helped by higher realisations and growth in cement sales.

The company’s Q2 performance is almost a repeat of its Q1 show. It posted strong double-digit growth on various parameters despite weak demand during the September quarter in the southern and eastern regions of the country.

Ramco Cement’s revenue (net of GST) grew 11.5 per cent at ₹1,326 crore (₹1,189 crore), while its operating profit increased 20 per cent at ₹304 crore (₹253 crore).

Its cement sales grew 10 per cent to 27.24 lakh tonnes (24.69 lakh tonnes).

The company said in a statement it has been focussing on cost reduction initiatives and improving productivity while maintaining the highest quality standards. It is taking continuous efforts to optimise supply chain efficiency, it added.

Ramco said its strategy of ‘right cement for the right application’ has been well received, and helped improve its brand preference along with premium pricing. As the new strategy gained traction, the company also launched its premium cement product ‘Supercrete’ (for crack-free concrete) across Tamil Nadu, Kerala, Karnataka and Andhra Pradesh.

Half-yearly result

For the half-year ended September 30, Ramco’s profit after tax grew 51 per cent at ₹360 crore, against ₹239 crore in H1 FY19.

Its revenue (net of GST) stood at ₹2,718 crore (₹2,414 crore), while operating profit grew to ₹672 crore (₹508 crore).

Cement sales grew 7 per cent to 5.43 million tonnes (5.08 million tonnes).

The unit-2 of cement grinding in Kolaghat, West Bengal, commenced commercial production last month, increasing the grinding capacity at the facility to 2 mtpa from 1 mtpa. The company has so far incurred ₹1,430 crore for the capacity expansion programme.