The Ramco Cements has reported a 20 per cent fall in its net profit at ₹125 crore for the quarter ended June 30, 2018 from ₹156 crore in the year-ago period, on the back of lower operating profit.
Though the company’s revenue (net of excise duties and taxes) grew 16 per cent to ₹1,225 crore (₹1,034 crore in Q1 of previous fiscal), its operating profit fell to ₹255 crore from ₹296 crore.
During the first quarter of this fiscal, the company’s domestic sale of cement stood at 25.77 lakh tonnes as against 21.24 lakh tonnes in the previous fiscal. Export sales were 0.37 lakh tonnes (0.26 lakh tonnes).
“Though there has been volume growth of 22 per cent during the June quarter compared to previous corresponding period, the realisation has impacted adversely due to pressure on prices, increase in transportation cost due to rise in diesel price and increase in lead distance,” according to a statement.
Average diesel price had increased by 20 per cent year-on-year, which had resulted in increase in transportation cost of both raw materials and finished goods. During the current quarter, the cost of pet coke and coal also increased.
The company said it was proposing to go on appeal to Supreme Court against the order of National Company Law Appellate Tribunal, which dismissed the appeal of the company against Competition Commission of India’s order and penalty imposed on Ramco, by its order dated July 25, 2018.
“The Company believes that it has a good case and hence no provision is made,” the statement said.