Ramco Cements Ltd. has unveiled a capital expenditure (capex) plan of ₹1,200 crore for the fiscal year 2026, maintaining its previous guidance set for FY25. The company also raised ₹443 crore this year through the sale of non-core assets, with further steps taken to meet its target of monetising ₹1,000 crore worth of such assets. In the third quarter of FY25, Ramco Cements spent ₹256 crore in capex, bringing the total spending for the first nine months of the fiscal year to ₹800 crore.
The company reported that additional advances of ₹10 crore were received for assets in the final stages of sale, further contributing to its progress. The proceeds from asset sales have been utilized to reduce the company’s debt, which stood at ₹4,616 crore as of December 31, 2024. In Q3FY25, Ramco Cements successfully reduced its debt by ₹487 crore.
Ramco Cements is progressing toward its goal of reaching a cement production capacity of 30 million tonnes per annum (MTPA) by March 2026. This expansion includes the commissioning of a second production line at Kolimigundla, as well as capacity upgrades through de-bottlenecking and adding new grinding facilities. A railway siding at Kolimigundla is expected to be operational by March 2025.
In addition, the company plans to activate a 10 MW Waste Heat Recovery System (WHRS) at its RR Nagar plant by June 2025, and a 15 MW WHRS unit at Kolimigundla by March 2026, alongside the commissioning of Kiln Line-2. Furthermore, a new construction chemicals unit in Odisha is set to start production before March 2025. Ramco Cements has already acquired 53% of the mining land and 13% of the factory land for its greenfield project in Karnataka.
In Q3FY25, Ramco Cements reported a profit after tax (PAT) of ₹325 crore, a substantial increase from ₹93 crore in the same quarter of the previous year. This growth was primarily driven by exceptional income of ₹329 crore from the sale of investments and surplus land.
Net revenue for Q3FY25 amounted to ₹1,988 crore, compared to ₹2,113 crore in Q3FY24, reflecting a 6% decline, largely due to a 14% decrease in cement prices year-over-year. However, the company saw a 9% increase in total sales volume, reaching 4.37 million tonnes, up from 4 million tonnes in Q3FY24.
Cement capacity utilization also saw a slight improvement, rising to 75% in Q3FY25, from 74% in the previous year. Despite cost reductions from falling fuel prices and better manufacturing efficiency, EBITDA for the quarter fell to ₹291 crore, down 28% from ₹402 crore in Q3FY24, impacted by weaker cement prices and reduced margins.
Ramco Cements is one of India’s leading cement manufacturers, known for its high-quality products, innovative practices, and sustainable operations. Headquartered in Chennai, the company has a strong presence in South and East India, with state-of-the-art manufacturing facilities that ensure efficient production and minimal environmental impact.
Ramco Cements offers a diverse portfolio of cement and ready-mix concrete solutions tailored to various construction needs, from residential projects to large-scale infrastructure developments. With a commitment to sustainability, the company integrates green energy initiatives, such as waste heat recovery systems and wind power, into its operations. Backed by a legacy of excellence and continuous innovation, Ramco Cements remains a trusted name in the construction industry, delivering superior products that contribute to India’s growth and development.
