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.