Slow Tamil Nadu sales affect Ramco 3Q net profit

Slow Tamil Nadu sales affect Ramco 3Q net profit
07 February 2018

Ramco Cements has seen its 3QFY17-18 net profit dragged down on the back of lacklustre demand in its core market of Tamil Nadu, India. Net profit fell to INR1.227bn from INR1.519bn in the quarter ended 31 December 2016, according to The Hindu newspaper.

Revenues edged up from INR9.647bn to INR10.615bn over the period. The company’s CEO, AV Dharmakrishnan, said with demand soft in Tamil Nadu, Ramco has had to look increasingly further afield for sales and he reported the eastern region is recovering well. Third-quarter sales volumes reached 2.274Mt, up from 1.982Mt reported for the comparable period of the previoius year.

Sand shortages and a two-decade low in public sector sales has led to slow sales in Tamil Nadu. With no immediate solution to the lack of sand, the immediate outlook remains uncertain.

Cement producers have also seen a shrinking of their margins as diesel and petcoke prices are increasing.

Published under Cement News