Ramco reports 2Q17 net profit of US$26m

Ramco Cements has reported a drop in net profit during the 2Q17-18, due to tough local market conditions in Tamil Nadu and increasing operating costs driven by increasing power, fuel and transportation costs.

The company reported a net profit of INR168.520 (US$26m) on a total revenue of INR10.73bn. Transportation and handling costs increased to INR2107m. Power and fuel costs increased to INR1725.4m while finance costs were down at INR172.7m.

During the quarter, the company sold 2.15Mt, including exports.

According to a press release from the company, there has been a significant slowdown in the Tamil Nadu market due to drought and shortage of river sand for construction. But growth in the Eastern region has helped.