Ramco Cements sees 59% fall in 3Q net profit

Ramco Cements sees 59% fall in 3Q net profit
25 January 2022

India-based Ramco Cements Ltd reported a 59 per cent decrease in standalone profit after tax at INR830m for the quarter ended 31 December 2021 (3QFY21-22). In the 3QFY20-21 standalone profit after tax was INR2.01bn.

Net revenues for the 3QFY21-22 expanded 16 per cent YoY to INR15.56bn from INR13.45bn in the 3QFY20-21, as cement sales volumes increased 15 per cent to 3.01Mt from 2.61Mt in the year-ago period. But the company said demand was weak due to a range of factors such as the monsoons, festivals and the COVID-19 pandemic.

However, sharp fuel price increases and a drop in cement prices combined to see EBITDA decline 41 per cent YoY to INR2.38bn from INR4.03bn in the year-ago period. Profit before tax lost much of its lustre, down 62 per cent YoY to INR1.13bn in the 3QFY21-22 from INR2.98bn in the 3QFY20-21.

Sharp fuel hikes
While diesel prices increased by 22 per cent YoY, the spot prices of petcoke also peaked at US$250/t in October 2021 with a current spot CIF price of ~US$150. Imported coal from Indonesia saw unprecedented spot prices of US$255/t in October, which have since eased to US$100/t in December.

However, the operations of the 18MW waste heat recovery system (WHRS) in Jayanthipuram have supported the overall power and fuel cost to some extent. In November 2021 one boiler of the balance 9MW WHRS was commissioned and is generating 5MW. The other boiler is expected to come online in April 2022.

Published under Cement News