The Ramco Cements rose 2.22% to Rs 368.85 at 11:05 IST on BSE after consolidated net profit surged 166.6% to Rs 94.67 crore on 0.93% decline in total income to Rs 954.58 crore in Q1 June 2015 over Q1 June 2014.
The result was announced after market hours yesterday, 5 August 2015.
Meanwhile, the S&P BSE Sensex was up 20.74 points or 0.07% at 28,243.82.
On BSE, so far 45,807 shares were traded in the counter as against average daily volume of 18,662 shares in the past one quarter.
The stock hit a high of Rs 380, with the stock matching with the record high hit on 7 November 2014. The stock hit a low of Rs 367.30 so far during the day. The stock had hit a 52-week low of Rs 270 on 27 March 2015.
The stock had outperformed the market over the past one month till 5 August 2015, rising 7.2% compared with Sensex's 0.46% gain. The scrip had also outperformed the market in past one quarter, gaining 15.73% as against Sensex's 2.85% gain.
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The mid-cap company has equity capital of Rs 23.81 crore. Face value per share is Re 1.
The Ramco Cements said that the operating cost of the cement division has decreased because of all-round cost reduction initiatives and softening of fuel prices. The company continued to focus on cost reduction measures which enabled the company to reduce the operating cost significantly and the company is confident of reducing the cost further in the coming quarters.
However, the reduction in the operating cost was largely off-set due to the increase in royalty of limestone from Rs 63 per tonne to Rs 83 per tonne with effect from 1 September 2014. As per the Mines and Minerals (Development and Regulation) Amendment Act, 2015, the holders of existing mining leases are required to pay to the District Mineral Foundation Fund, over and above the royalty, an amount not exceeding the applicable royalty, which is yet to be notified by the government. As per the principles of prudence, the company has created sufficient provisions for the same and it has been included in the raw materials cost for the current quarter.
The Ramco Cements (formerly Madras Cements) is the flagship company of the Ramco Group, a well-known business group of South India. It is headquartered at Chennai. The main product of the company is Portland cement, manufactured in eight state-of-the art production facilities that includes integrated cement plants and grinding units.
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