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The Ramco Cements Ltd reported a 23 per cent increase in standalone net profit at ₹152 crore for the quarter ended March 31, 2022, compared with ₹124 crore in the year-ago period, helped by improved volumes amid cost pressures.
The company board recommended a dividend of ₹2 per share of ₹1 each for the year ended March 31, 2023.
The sale of cement and dry mortar products stood at 4.70 million tonnes (3.23 million tonnes), an increase of 46 per cent.
Net revenue grew 50 per cent to ₹2,581 crore (₹1 ,719 crore). EBITDA was higher at ₹424 crore (₹305 crore). Capacity utilisation increased to 85 per cent .
“The company continues to focus on the strategy of the right products for the right applications to make its brands stronger,” said a statement.
For the year ended March 31, 2023, the company’s standalone net profit was significantly lower at ₹344 crore compared with ₹893 crore in FY22 due to the reversal of deferred tax liability of ₹306 crore due to the adoption of a new tax regime in FY22.
Net revenue grew 36 per cent at ₹8,172 crore (₹6,011 crore). During FY23, the sale of cement and dry mortar products grew 35 per cent to 15.02 million tonnes.
But cost pressures dented its margins as its EBITDA fell 7 per cent at ₹1,219 crore (₹1,314 crore). Since coal and pet coke prices remained at elevated levels during 2022, the power & fuel cost per tonne of cement for FY23 increased to ₹1,796 from ₹1,257 in FY22.
Cement price
“While the average net realisable price of cement was flat during FY23, the elevated prices of pet coke/coal have dented the margins. Further, the transportation cost by rail has increased by 15 per cent due to the re-imposition of the busy season surcharge w.e.f. October 1, 2022, and an increase in diesel price by 3 per cent during FY23 has pushed up the inbound and outbound logistics cost,” the statement said.
The net debt for the company as on March 31, 2023 was ₹4,351 crore, of which ₹478 crore was for working capital.
Outlook
The current demand for cement is good in IHB (individual house building) and infra segments. The CIF spot price of pet coke started softening from February and the current price is about $125, down from $178. The company expects an improvement in margins from the second quarter of this fiscal.
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