Ramco Cements tumbles after weak Q3 performance

The Ramco Cements slumped 6.33% to Rs 840.10 after the company's standalone net profit declined 59% to Rs 83 crore despite a 16% rise in revenue to Rs 1,556 crore in Q3 FY22 over Q3 FY21.

EBITDA fell by 41% to Rs 238 crore in Q3 FY22 from Rs 403 crore in Q3 FY21. While the variable costs had gone up due to sharp fuel price increase, cement prices had declined sharply in Dec'21, the company said.

Cement sales rose 15% YoY to 3 million tonnes while generation of wind power declined by 35% YoY to 2.28 crore units in the third quarter.

The company said the clinkering unit of 2.25 MTPA in Kurnool is expected to be commissioned next month. The 1 MTPA cement grinding facility, 12 MW of waste heat recovery system and 18 MW of Thermal Power Plant in Kurnool are expected to be commissioned during FY23.

The company has proposed to expand the capacity of its dry mix products in Tamil Nadu, Orissa and Andhra Pradesh with the total estimated cost of Rs 160 crore to produce high value products viz, water proofing, repair products, flooring screeds including liquid products besides other regular dry mix products.

The Ramco Cements is engaged in making portland cement, ready mix concrete and dry mortar products, and operates wind farms.

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