The Ramco Cements Ltd (RCL) reported standalone net profit for the September quarter contracted to ₹26 crore from ₹101 crore in view of weak demand due to monsoon.
Revenue from operations degrew to ₹2,038 crore from ₹2,329 crore due to drop in cement prices by around 10% YoY and drop in volume by 3%. Cost of raw materials per ton increased marginally by 1% YoY to ₹903 due to inflationary impact on procurement cost, the cement major said in a statement.
Total sale volume declined to 4.49 million tonnes from 4.61 million tonnes. The capacity utilisation dropped from 82% to 75% due to additional capacities created by way of debottlenecking and commissioning of line two in Odisha.
RCL is on track to achieve cement capacity of 30 MTPA by March 2026 with the commissioning of second line in Kolimigundla along with de-bottlenecking of existing facilities and adding grinding capacities in existing locations with minimal capex.
In Kolimigundla, thermal power plant of 18 MW commenced commercial production in September. The company incurred ₹263 crore as capex including maintenance capex. The capex estimated for FY25 remain unchanged at ₹1,200 crore.
RCL monetized ₹376 crore out of targeted value of ₹1,000 crore of non-core assets. Further, RCL entered into a sale agreement for disposal of lands worth ₹74 crore, which is expected to be realised during Q3.
The net debt as on September is ₹5,103 crore. RCL repaid ₹326 crore of its debt in October using proceeds from the disposal of non-core assets.
The change in utility of sale of wind power to captive use has helped to reduce the overall power cost and resultantly, the green power usage has improved from 38% to 39%. As of September, the green power capacity is 209 MW. This will be increased to 219 MW by the end of FY25 and 234 MW by end of FY26.
Published – November 11, 2024 10:00 pm IST
