The Ramco Cements Ltd has reported a consolidated net profit of INR845.6m (US$9.63m) for 1QFY25-26, helped by improvement in the cement prices and operational efficiencies. The company had posted a net profit of INR365.7m in the 1Q24-25, according to its consolidated unaudited statements.
Its revenue from operations declined marginally to INR20.77bn in the 1Q25-26, from INR20.97bn in the same period last fiscal.
Profit before tax advanced from INR475.4m in the 1QFY24-25 to INR114.9m in the 1QFY25-26.
"During 1Q25-26, the cement sale volume is 4Mt, compared to 4.29Mt in 1Q24-25, with a de-growth of seven per cent in view of weak demand due to early monsoon rains in Kerala. In eastern markets, many infra projects nearing completion amid unseasonal rains have dampened the demand," the company said in its earnings statement. Consequently, the cement capacity utilisation for the 1Q25-26 is at 68 per cent, down from 77 per cent during the previous corresponding period, it said. Capacity utilisation is also down as the company brought a total 1.3Mta of extra capacity online following debottlenecking projects.
"EBIDTA for 1Q25-26 is INR4.04bn as against INR3.28bn during 1Q25-26 with growth of 23 per cent in view of improvement in cement prices," it said.
The company’s total expenses in the June quarter were down 4.3 per cent at INR19.65bn.
Ramco Cements' total income, which includes other income, was also down one per cent in the 1Q25-26 to INR20.80bn
Concerning the high capex, Ramco Cements said it "plans to achieve cement capacity of 30Mta by March 2026 with the commissioning of a second line in Kolimigundla along with de-bottlenecking of existing facilities and adding grinding capacities in existing locations with nominal capex."
