Ramco Cements (formerly Madras Cements) has reported a steep drop in net profit for the quarter ended September 30, 2013, against the previous year period.
Net profit was down 86 per cent, primarily due to a drop in contribution from the cement business.
According to the segment results before tax and interest, cement accounted for Rs 55.57 crore (Rs 233.41 crore) and windmills Rs 18.92 crore (Rs 37.66 crore).
A.V. Dharmakrishnan, CEO, said sluggish demand for cement in the southern States, Ramco’s core market, contributed to the drop in net profit.
focus markets
The company managed to sustain volumes by focussing on other markets, which hit margins, and some exports.
The political turmoil in Andhra Pradesh was a cause for concern as demand has been hit in the backdrop of a huge oversupply.
The outlook continues to remain uncertain with ‘demand side bad’ as infrastructure development is yet to pick up.
On the NSE, the company’s shares closed at Rs 174.20 against the previous close of Rs 177.85.