Ramco Cements reports 47% 3Q profit rise

India-based Ramco Cements posted a 3Q19 profit of INR1.68bn (US$23.7m), up by 47 per cent when compared with INR1.14bn in the 3Q18. When compared with the quarter ended June, profit was down 12.5 per cent from INR1.92bn. On a consolidated bases, earnings in the 3Q19 increased 43.3 per cent to INR1.72bn from INR1.2bn in the year-ago period.

Revenues advanced by 12 per cent YoY to INR12.82bn in the 3Q19 when compared with the equivalent period of the previous year but fell five per cent when compared with the 2Q19.

“Ramco Cements reported strong performance which was ahead of estimates despite challenging environment mainly led by better than expected volume and pricing,” said analysts at Reliance Securities.

The positive trend was the result of a sound improvement in sales volume and a lower-than-expected decline in realisation. Total sales volume was 2.724Mt of cement, compared with 2.469Mt in the year-ago period. Exports grew by 39 per cent YoY.

“The company has been constantly focussing on various cost reduction initiatives and improving productivity while maintaining highest quality standards. The company is taking continuous efforts to optimise the supply chain efficiency,” said Ramco Cements.

The company incurred INR14.3bn for its capacity expansion programme and proposed to meet the capex requirement partly through internal accruals and partly through borrowings. Its total borrowings as of September 2019 stood at INR24.41bn.