Ramco Cements has posted a net profit of Rs 165.37 crore during the quarter ended March 31, 2019, a growth of 52.29 per cent compared to Rs 108.59 crore during the same period of last year. The firm’s total revenue stood at Rs 1,543.47 crore during the quarter, up 21.17 per cent over Rs 1273.76 crore during the same quarter last year.
The company was able to sell 11.12 million tonnes for the full fiscal year ended March 31, 2019, registering a 19 per cent rise over 9.31 million tonnes sold the previous year. FY19 sale volume has grown both in southern and eastern markets due to strong demand in all segments including, retail, infrastructure and affordable housing, the company said.
Ramco expects cement demand to grow at around eight per cent in 2019-20, considering the GDP growth, hazy outlook of crude oil prices, lingering global trade tensions etc, lower rainfall in South India so far and the Indian Meteorological Department forecast for a near normal monsoon in the coming season.
The realisation for FY19 has been subdued due to pressure on prices for most part of the year. Besides, increase in transportation cost due to an average diesel price rise of 17 per cent also had an impact. Despite the company’s efforts in supply chain management and the beneficial effects of relaxation of axle load norms by the Government, overall logistics cost remained high during the year, it said.
Pet coke prices were around $102-106 during the first half of the year, and had gradually softened during the second half. Rupee depreciation during the year also impacted fuel prices.
Even though there is a growth of 16 per cent in net revenue, from Rs 4,443 crore to Rs 5,175 crore during the year, margins were under constant stress due to pressure on cement prices for most part of the year and spiralling Odisha and expansion of West Bengal and Andhra Pradesh are expected to be completed by October and December. Expansion of clinkering capacity at the Jayanthipuram, AP from 3 MTPA to 4.50 MTPA along with WHRS capacity of 27 Mw, is expected to be commissioned in July 2020.
A new cement plant in Kolimigundla, Kurnool District, AP with clinkering capacity of 2.25 MTPA and cement capacity of one MTPA is expected to be commissioned in March 2021. The proposed plant will have railway siding and a thermal power plant of 15 Mw, among other facilities.
The company is planning to meet the capex largely through internal accruals and for balance requirements, if any, through borrowings. The company has incurred aggregate capital expenditure of Rs 1,206 crore for FY19 including for these projects, it said.
Source: Business Standard