Representational photo
| Photo Credit: BIJOY GHOSH
The Ramco Cements Ltd. reported standalone net profit for the quarter ended March rose 23% from the year-earlier period to ₹152 crore.
Revenue from operations grew 51% to ₹2,559 crore. Earnings before interest tax depreciation and amortisation increased by 39% to ₹424 crore, the company said in a regulatory filing.
“There has been a 23% increase in our Q4 net profit due to increase in sales volume and our strategy of offering the right cement for right applications yielded positive results,” said chief executive officer A.V. Dharmakrishnan.
The cement major sold 4.70 million tonnes of cement and dry mortar products against 3.23 million tonnes. While the average net realisable price of cement was flat during the year, the elevated prices of fuel and levy of surcharge by railways further dented the margins.
According to the CEO, interest cost rose to ₹77 crore from ₹33 crore and depreciation cost stood at ₹141 crore against ₹108 crore. The increase in interest and depreciation was due to the commissioning of Jayanthipuram line-3 integrated plant in Andhra Pradesh and dry mortar plants.
“While long-term prospects of profitability look promising, the short-term outlook is expected to improve from the second quarter,” he said.
With regard to expansion of capacity of its dry mix products, he said units in Andhra Pradesh and Odisha would be commissioned during FY24. The net debt for the company stood ₹4,351 crore, of which ₹478 crore is for working capital. The board declared a dividend of ₹2 per share.
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