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Ramco Cements Ltd reported a 42 per cent fall in standalone net profit after tax at ₹124 crore for the quarter ended March 31, 2022, compared with ₹214 crore in the year-ago period, due to cost pressures and lower realisation.
Its profit from ordinary activities before tax stood at ₹164 crore against ₹348 crore in the same period of the previous fiscal. Power and fuel costs shot up to ₹467 crore compared to ₹248 crore, while finance costs more than doubled to ₹33 crore (₹15 crore). However, tax expenses were lower at ₹40 crore against ₹134 crore
Revenue from operations for the quarter stood at ₹1,698 crore compared to ₹1,624 crore in the year-ago period, an increase of about 5 per cent.
For the year ended March 31, 2022, the company’s standalone net profit after tax stood at ₹893 crore (boosted by deferred tax adjustments of earlier years) compared to ₹761 crore in FY21. Profit before tax in FY22 was ₹801 crore (₹1,140 crore).
Fuel price hike
EBIDTA was at ₹1,314 crore (₹1,583 crore), a decline of 17 per cent mainly due to a sharp increase in fuel price and weak cement prices, the company statement said. The industry could not pass on the full cost increase to its customers, it added.
While logistics costs shot up due to higher diesel prices, pet coke and imported coal prices also witnessed an unprecedented increase. The power and fuel cost per tonne of cement sharply increased to ₹1,257, from ₹797 in FY21.
Net revenue grew 13 per cent to . ₹6,011 crore in FY22 against ₹5,303 crore in FY21.
Capacity expansion
The company proposes to expand capacity of its dry mix products in Tamil Nadu (TN), Orissa and Andhra Pradesh to produce high-value products such as waterproofing, repair products, and flooring screeds including liquid products besides other regular dry mix products. The two units in TN will be commissioned in FY23 and the two units in AP and Orissa will be commissioned in FY24, it said,
In FY22, it incurred ₹1,816 crore towards capex, including for the ongoing capacity expansion programme. Gross debt as of March 31, 2022 was at ₹3,930 crore, of which ₹505 crore was a short-term loan.
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