Ramco Cements Q3 net more than doubles to Rs 201 crore, revenue up 5%

Sales by volume drop 8%, company cites extended monsoon in South for lower offtake

Ramco Cements has reported a 112.39 per cent increase in net profit to Rs 201.35 crore during the third quarter ended December 31, 2020, from Rs 94.8 crore in the corresponding quarter a year ago.

The firm's total revenue rose to Rs 1,345.42 crore from Rs 1,286.43 crore, a year ago, an increase of around five per cent.

The Company's management said that during the quarter year ended December 31, 2020, its cement sales were eight per cent lower at 2.61 million tonnes, compared to 2.84 million tonnes in the corresponding period of the previous year. The sales volume in the reporting quarter was impacted due to extended and above normal monsoon in Tamil Nadu, Kerala, Karnataka, AP and Telangana. The company has registered good growth in its eastern markets. The cement prices were constantly under pressure across all its markets during the current quarter.

EBIDTA for the third quarter was Rs 403.34 crore as against Rs 211.32 crore during the previous corresponding period with an increase of 91 per cent due to improved margins. Blended EBIDTA per tonne for the quarter ended December 31, 2020 is Rs 1,543 as against Rs 743 during the previous corresponding period.

The management said, power and fuel cost for the current quarter has reduced mainly due to higher inventory base, procured at lower cost in earlier quarters. This has benefited the company to keep a check on overall cost, while the market prices of pet coke and coal have witnessed sharp increase during this quarter. Besides, the operations of wind plants have also helped to manage the power cost under control during the quarter. 

On capex, the company said it expects to commission the clinkering unit of 1.5 MTPA along with 9 MW WHRS in Jayanthipuram and 2.25 MTPA clinkering unit in Kurnool during the first quarter of 2021-22 albeit difficulties/challenges experienced during the pandemic caused by COVID-19. 

The one-MTPA cement grinding facility, 12 MW of WHRS and 18MW of TPP in Kurnool are expected to be commissioned during 2021-22.

During the nine months period up to 31-12-2020, the company has incurred Rs.1,166 crores towards capex, including for the above-mentioned ongoing capacity expansion programme. The balance capex to be incurred as on 31-12-2020 is Rs.537 crores for its ongoing capacity expansion.