Ramco Cements posts 40% increase in net profit

India’s Ramco Cements has reported a 40 per cent YoY increase in net profit to INR2.36bn (US$31.69m) for the second quarter of the FY20-21. However, revenue was down 4.6 per cent to INR12.65bn from INR13.26bn in the corresponding period of the previous fiscal.

EBITDA surged 48 per cent YoY to INR4.5bn from INR3.04bn, on the back of improved margins. During the quarter, the stability in cement prices, improved sale of its flagship products and premium products in the trade segment played out well for the overall improvement of realisations, according to the company.

During the quarter, cement sales reached 2.21Mt compared to 2.72Mt in the 2QFY19-20. The sale was impacted by restricted access in containment zones due to COVID-19 and heavy rains in Kerala, Karnataka, Andhra Pradesh and Telangana during August and September.