Ramco Cements posts 18% profit increase in FY19-20

India’s Ramco Cements recorded a 13.2 per cent YoY decline in consolidated net profit to INR1.43bn (US$18.8m) during the 4QFY19-20, compared with INR1.65bn in the year-ago period. Consolidated revenue also fell 9.2 per cent YoY to INR14.04bn from INR15.46bn.

However, the company posted an 18.4 per cent rise in net profit to INR6.02bn for the full FY19-20 period, against INR5.11bn in the previous fiscal. Revenue advanced 4.5 per cent YoY to INR54.23bn from Rs51.87bn.

In FY19-20, cement sales edged up to 11.20Mt from 11.12Mt in the previous year.

"The cement prices were under pressure for the most part of the year. Logistics costs have come down due to a reduction in diesel prices and a reduction in lead distances," said the company in a statement.

"The operating cost continues to remain under control in view of benign prices of fuels viz., petcoke, coal and diesel during the year. The average petcoke prices have dropped by 28 per cent during the year. The average coal prices have declined by nine per cent during the year. Diesel prices have dropped by four per cent during the year. The rupee depreciation has largely offset the fuel price benefits."