Tough local market conditions in Tamil Nadu and increasing operating costs driven by increasing power, fuel and transportation costs led to a drop in net profit for Ramco Cements during the second quarter of 2017-18.
The company reported a net profit of ₹168.52 crore (₹207.01 crore) on a total revenue of ₹1073.66 crore (₹1,174.15 crore). Transportation and handling costs increased to ₹210.72 crore (₹178.77 crore); power and fuel costs increased to ₹172.54 crore (₹120.30 crore) while finance costs were down at ₹17.27 crore (₹28.16 crore).
During the quarter, the company sold 21.52 lakh tonnes of cement (20.25 lakh tonnes), including exports. According to a press release from the company, there has been a significant slowdown in the Tamil Nadu market due to drought and shortage of river sand for construction. But growth in the Eastern region has helped.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.