Lacklustre demand in its core market Tamil Nadu and cost pressure have dragged down Ramco Cements’ performance during the third quarter of the current year as compared with the corresponding quarter in the previous year.

For the quarter ended December 31, 2017, the company reported a net profit of ₹122.74 crore (₹151.88 crore) on a revenue of ₹1061.52 crore (₹964.74 crore).

AV Dharmakrishnan, CEO, said with the demand down in its home State, the company has to increasingly look farther afield for sales. Eastern region is picking up well, he said.

In Tamil Nadu, cement demand is at a low due to construction sand shortage and a two-decade low in public sector offtake. Immediate outlook is also uncertain with no immediate solution to the sand shortage problem.

Costs are also on the increase with prices of diesel and petcoke increasing. The company has judicially managed its costs and is long term debt-free. Interest costs continue to remain well under control ₹16.03 crore (₹26.11 crore), he said.

During the third quarter, total sales was at 22.74 lakh tonnes (19.82 lakh tonnes).

Ramco Cements has also completed the buyback of shares through open market purchases. It bought back 25 lakh shares at an average rate of ₹673 a share at a total cost of ₹168.12 crore and the shares extinguished, said a press release from the company.

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