Ramco Cements Q1 profit up by 169% to Rs 97 cr

Company's income drops marginally

Ramco Cements Ltd has posted a net profit of Rs 97.4 crore for the quarter ended June 30, 2015 as compared to Rs 36.26 crore for the quarter ended June 30, 2014.

Total Income has decreased from Rs 960.9 crore for the quarter ended June 30, 2014 to Rs 952.7 crore for the quarter ended June 30, 2015.

The company has said the operating cost has decreased due to all round cost reduction initiatives and softening of fuel prices and the company continued to focus on cost reduction measures, however, the reduction in the operating cost was largely off-set due to increase in Royalty of Limestone which was increased to Rs 83 per tonne from Rs 63 per tone with effect from September 1, 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 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.