The Ramco Cements Ltd has reported a lower net profit at ₹79 crore for the quarter ended June 30, compared with a net profit of ₹112 crore in the year-ago quarter despite higher sales in cement.

The company’s cement sales stood at 4.30 million tonnes (3.34 million tonnes) in Q1 of this fiscal, an increase of 29 per cent. Net revenue grew 26 per cent to ₹2,249 crore (₹1,779 crore).

But for the non-availability of sand in Kerala, supply disruption due to rail accidents in Odisha and West Bengal and active monsoon in the North-East, the growth in sales volume could have been better for the current quarter, said a company statement.

Its EBIDTA for the June quarter grew 14 per cent to ₹349 crore (₹308 crore). EBIDTA margin was affected due to elevated fuel prices and weak cement prices in markets where the company operates. Blended EBIDTA per tonne was ₹812 (₹921).

Power and fuel cost has increased ₹188 per tonne year on year. Even though fuel prices have softened for a brief period, the full effect of price reduction is expected to reflect from Q2FY24, in view of the high base inventory during Q1FY24. Profit before tax stood at ₹108 crore (₹154 crore).

The cement capacity utilisation was at 79 per cent during the quarter, up from 65 per cent in Q1FY23, but down from 85 per cent in Q4FY23.

Capacity expansion

The company incurred ₹284-crore capacity expansion, including regular capex, during Q1. In Kurnool, 3 MW of WHRS (waste heat recovery systems) will be commissioned during this quarter, while TPP (thermal power plant) of 18 MW and railway siding will be commissioned before the end of FY24.

With regard to the expansion of the dry mortar project, two units in Andhra Pradesh and Odisha will be commissioned during this fiscal. Odisha Grinding Unit Line II, with a cement capacity of 0.9 MTPA, is expected to be commissioned before the end of FY24.

As of June 30, the company’s net debt was ₹4,406 crore, of which ₹479 crore was for working capital.

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