Ramco boosted by cost control, stable pricing

Ramco boosted by cost control, stable pricing
04 June 2015

India-based Ramco Cements reported a 274 per cent rise in 4QFY14-15 net profit to INR934.2m (US$14.6m) on better cost management and stable cement prices.

Revenues for the three months to the end of March 2015 edged ahead by 1.2 per cent to US$156m but sales volumes fell 16.4 per cent to 1.88Mt (2.25Mt a year earlier).

For the fiscal year that ended on 31 March 2015, Ramco Cements achieved a profit of US$37.9m, a rise of 76 per cent and a revenue of US$584m. Cement sales totalled 7.67Mt compared to 8.59Mt in the previous financial year.

"Our ability to manage costs and stable cement prices helped us in better financial performance," said AV Darmakrishnan, managing director and CEO of Ramco Cements. On the outlook for cement demand during the current fiscal year, he said, "We are cautious and will wait."

Operating costs decreased because of cost reduction initiatives and falling fuel prices. However the reduction in costs was offset by an increase in royalty on limestone from US$0.986/t to US$1.25/t with effect from 1 September 2014.

Ramco Cements installed a new 0.95Mta  grinding plant in Gobburpalam Village, Vishakapatnam, which was commissioned in March 2015.

Published under Cement News