Input cost increased by 28% to ₹254 crore, according to the company.
| Photo Credit: BIJOY GHOSH
The Ramco Cements Ltd standalone net profit for the quarter ended December contracted to ₹67 crore from ₹83 crore in the year-ago period due to steep increase in input cost mainly fuel price.
During the period under review, revenue from operations rose to ₹1,991 crore from ₹1,541 crore while input cost increased by 28% to ₹254 crore, it said in a regulatory filing.
Cement sales rose to 3.57 million tonnes from 3.01 million tonnes. There was a 12% fall in windfarms generation to 2.01 crore units. The capacity utilisation of clinker at Kolimigundla plant in AP reached 55%.
The cement major said despite an improvement in average price of cement during the quarter, it could not cover the cost increase since the pet coke/coal prices remain at elevated levels. Rail transportation cost increased by 15% due to re-imposition of busy season surcharge from October.
On the expansion, it said that out of 12 MW waste heat recovery systems in Kolimigundla, 5 MW was commissioned in November. Another 3 MW will be commissioned in February and balance by May.
Thermal Power Plant of 18 MW and railway siding would be commissioned in FY24. The modernisation of RR Nagar plant would be commissioned before March.
With regard to capacity expansion of its dry mix products in TN, production has started in one unit in December and another unit in February. The remaining two units in AP & Odisha would be commissioned during FY24.
During the third quarter, the company incurred capex of ₹390 crore. The net debt stood at ₹4,556 crore, of which ₹564 crore is short-term loan.
Current demand for cement is good in individual home builders and infra segments. The demand in the medium term is also encouraging in view of good monsoon, water levels in reservoirs, focus on infra spend by the Government and upcoming elections. The current CIF spot prices of pet coke are ranging from $175 to $180, it said.
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