Ramco Cements Q3FY25 results: Revenue decreases 6% to Rs 1,977 crore

India's Ramco Cements on Thursday posted a 97 per cent slump in third-quarter adjusted profit, hurt by a drop in prices of the key construction material.

Profit before exceptional items and tax for the company's cement business fell to Rs 4.35 crore ($496,774) during the October-to-December period from Rs 135 crore a year earlier.

The company reported a one-time gain of Rs 329 crore from the sale of its surplus land and investments, it said.

Revenue from the cement business fell 6 per cent on-year to Rs 1,977 crore, below analysts' average expectation of Rs 2,019 crore, according to data compiled by LSEG.

Key context

Cement prices have been falling for most of last year, but showed signs of recovery in the reported quarter. Still, at the end of the December-quarter - a seasonally weak one as the pace of construction activity slackens - the average pan-India cement price was 11 per cent lower on-year.

In south India, Ramco's key market, the price drop was even higher at 14 per cent, it said, as increased dealmaking in the region spurred competition.

Cement makers have reported a mixed set of earnings for the December quarter.

Market leader UltraTech and its closest rivals, the Adani group-owned Ambuja and ACC, have benefitted as their acquisition sprees have helped bolster volumes.

However, smaller peers such as Shree Cement and Dalmia Bharat have been hit by low prices.