Ramco Cements 1Q net profit falls 34%

Indian cement producer The Ramco Cements saw its revenue from operations expand by 44 per cent to INR17.72bn (US$225.5bn). The company reported a stand-alone net profit of INR1.127bn in the 1Q22, down 34 per cent YoY as input and raw material costs spiked.

“EBIDTA for Q1 this fiscal is INR308 crore [INR3.08bn] against INR370 crore [INR3.7bn] during Q1 last year with de-growth of 17 per cent, mainly due to sharp increase in fuel price and weak cement prices. The industry could not pass on the full cost increase, arising out of sharp fuel price hike, to its customers,” the company said in a statement.

Total expenses saw a 65 per cent hike to INR16.257bn as raw material costs, power and fuel expenses and transport and handling charges increased.

Power and fuel expenses were up 138 per cent to INR5.244bn with diesel prices up on average by 11 per cent, leading to increased logistics costs.