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Ramco Cement hardens after strong Q2 results

Capital Market 

The Ramco Cements jumped 4.31% to Rs 783 after the company's consolidated net profit rose 43.18% to Rs 172.26 crore on a 11.32% increase in revenue to Rs 1,332.08 crore in Q2 September 2019 over Q2 September 2018.

The operating profit (EBITDA) rose 18.98% to Rs 308.14 crore in Q2 September 2019 over Q2 September 2018. The result was announced during market hours today, 30 October 2019.

The cement sales volume increased by 10.33% to 27.24 lakh tones in Q2 September 2019 as against 24.69 lakh tones in Q2 September 2018.

During the half year ended 30 September 2019, the sale of cement for the company was at 5.43 million tons, compared to 5.08 million tons of the previous corresponding period. Exports have grown by 39% during the period under review.

The company has been constantly focusing on various cost reduction initiatives and improving productivity while maintaining highest quality standards. The company is taking continuous efforts to optimize the supply chain efficiency.

With respect to capacity expansion, Ramco Cements said that the unit-2 of Cement grinding in Kolaghat, West Bengal has commenced commercial production from 26-9-2019. With this, the installed grinding capacity in Kolaghat has increased from 1 MTPA to 2 MTPA. The company has so far incurred Rs 1,430 crores for the capacity expansion programme.

The Competition Commission of India (CCI) vide its order dated 31 August 2016 had imposed a penalty of Rs. 258.63 crore on the company towards alleged cartelization. The company's appeal along with the appeals of other cement companies had been dismissed by NCLAT vide its order dated 25 July 2018. Against the order, the company appealed to the Supreme Court, which by its order dated 5 October 2018 admitted the appeal and directed to continue the interim order passed by NCLAT. Accordingly, the company re-deposited Rs 25.86 crore being 10% of the penalty. The company backed by legal opinion, believes that it has a good case and hence no provision is made.

Meanwhile, the S&P BSE Sensex was up 203 points or 0.51% to 40035.12.

On the BSE, 42,067 shares were traded in the counter so far compared with average daily volumes of 8,386 shares in the past two weeks. The stock hit a high of Rs 795.2 and a low of Rs 748 so far during the day.

The stock hit a 52-week high of Rs 845.1 on 27 May 2019. The stock hit a 52-week low of Rs 553.55 on 29 Jan 2019.

Ramco Cements business operation comprises of single operating segment viz., cement and cementitious materials.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, October 30 2019. 14:35 IST