The Ramco Cement Reflects 59.48% Profit Revenue in Q3 FY24

The Ramco Cements, a leading player in the construction materials sector, has reported a substantial increase of 59.48% in its net consolidated profit for the quarter ending December 31, 2023. This impressive growth is indicative of the company's robust financial performance and underscores its position as a key player in the industry.

The Ramco Cements has a long-standing reputation for excellence in the construction materials market and this recent financial success is a testament to its dedication to quality and innovation. As the company continues to expand its operations, there is no doubt that it will remain a force to be reckoned with in the industry.

Its profit after tax stood at Rs. 81.67 crore in Q3 FY24 as against Rs. 51.21 crore registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing.

The company's consolidated fund stood at Rs. 2,117.39 crore in Q3 FY24. The company witnessed a growth of 4.80 per cent from Rs. 2,020.37 crore in the last quarter.

In Q3FY24, the sale is 4 million tons compared to 3.64 million tons in the Q3 FY23 with a growth of 10%.The cement capacity utilisation for the Q3 FY24 is at 74%.

The cost of raw materials has increased by 3% year-on-year from Rs 944 to Rs 970 per ton for the current quarter due to rising procurement costs. For Q3 FY24, the blended fuel consumption per ton for cement costs $138. This is lower than the $191 cost during Q3 FY23.

The power & fuel cost per ton of cement for Q3 FY24 has decreased to Rs. 1,386 as compared to 1929 in FY23. The usuage of green power has improved from 20% to 36% for extensive use of wind power.

The current spot CIF prices of pet coke and 3400 GAR coal from Indonesia has come to the level of $118 and $47 respectively. With diminishing the price of pet coke the fuel consumption for Q4 FY24 may come down by $5 to $10.

The company is planning to increase clinker capacity in Kolimigundla to 6.30 MTPA and double the cement capacity to 3 MTPA with 15 MW of WHRS at an estimated project cost of Rs 1,250 crore. This plan will reflect from FY26 and aggregate WHRS capacity would further increase to 68 MW.

The company's net debt is Rs. 4,993 including working capital borrowings and the net debt to EBIDTA is at 3.22 times. It has reported an increase in working capital borrowings, leading to a net debt to earnings before interest, taxes, depreciation, and amortization (EBIDTA) ratio of 3.22 times. Furthermore, the average cost of debt for the nine-month period ending in FY24 has risen to 7.82%, from the 6.16% noted in the previous year's corresponding period. This increase in the cost of debt is attributable to the rising market rates.