The Ramco Cements Ltd has reported a 20 per cent decline in its standalone net profit after tax at ₹121 crore for the quarter ended March 31, 2024, compared with ₹152 crore in the year-ago period due to cost pressures.
The board has recommended a dividend of ₹2.50 per share of ₹1 each for the year ended March 31, 2024.
Its net revenue increased to ₹2,687 crore in Q4-FY24 (₹2,581 crore), while total expenses stood at ₹2,525 crore (₹2,375 crore).
Annual results
For the year ended March 31, 2024, the company’s standalone net profit was higher at ₹395 crore (₹344 crore).
Net revenue grew 15 per cent to ₹9,392 crore in FY24 (₹8,172 crore). The sale of cement and dry mortar products grew 22 per cent to 18.40 million tonnes (15.02 mt).
EBIDTA for FY24 stood at ₹1,595 crore (₹1,219 crore), an increase of 31 per cent. Blended EBIDTA per tonne for the FY24 was ₹867 (₹811 crore).
Higher costs
The cost of raw materials rose 5 per cent to ₹948 per tonne in FY24 (₹903 per tonne) due to the inflationary impact on procurement costs. However, the power and fuel cost per tonne of cement for FY24 decreased to ₹1,389 (₹1,771).
The change in utility of the sale of wind power to captive use has also helped reduce the overall power cost. The overall green power usage has significantly improved from 22 per cent in FY23 to 34 per cent in FY24 because of the change in the utility of wind power to captive purposes. The current spot CIF price of pet coke is at $110, according to a statement.
Interest cost was higher at ₹416 crore (₹241 crore), while depreciation stood at ₹636 crore (₹504 crore). The increase in interest and depreciation in FY24 was due to the commissioning of the Kolimigundla integrated unit, RR Nagar Line-3, and Dry Mortar Plants in RR Nagar and Salem.
The net debt as of March 31, 2024, was ₹4,822 crore, including working capital borrowings. The average cost of debt for FY24 was at 7.70 per cent (6.35 per cent) due to an increase in repo rates.
During FY24, the company incurred ₹1,922 crore towards capex including maintenance capex. The capex guidance for FY25 is estimated at ₹1,200 crore including maintenance capex.