Ramco Cements Ltd reported a 55% drop in net profit to ₹35.5 crore for the first quarter ending June 30, 2024. Revenue fell by 7% to ₹2,088 crore due to an 8% decline in cement prices. Despite weak demand during general elections, sales slightly increased by 1% to 4.36 million tonnes, with a capacity utilization of 77%.
EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) decreased by 6.4% to ₹319.5 crore, compared to ₹341.4 crore in the same period last year. The EBITDA margin stood at 15.3%, slightly up from 15.23% in Q1 FY24.
Raw material costs rose by 9% year-on-year to ₹990 per tonne due to higher procurement costs. However, power and fuel costs per tonne of cement decreased to ₹1,300 from ₹1,758 in Q1 FY24. The company improved its green power usage from 29% in Q1 FY24 to 33% in Q1 FY25, benefiting from using wind power for captive purposes.
Ramco Cements aims to reach a cement capacity of 30 million tonnes per annum (MTPA) by March 2026 by expanding facilities and adding grinding capacities with minimal capital expenditure. Ramco Cements, has earned a reputation for its high-quality products and sustainable business practices. Established in 1961, the company is part of the larger Ramco Group and has grown significantly over the decades.
Known for its innovative approaches and advanced manufacturing techniques, Ramco Cements produces a wide range of cement products that cater to various construction needs, from residential buildings to large infrastructure projects. The company’s commitment to environmental responsibility is evident in its use of alternative fuels and raw materials, as well as its efforts to reduce carbon emissions. With a strong distribution network and a focus on customer satisfaction, Ramco Cements continues to be a preferred choice for builders and contractors across India.
