Ramco Cements sees 55% fall in net profit

The Ramco Cements Ltd reported a 55 per cent fall in net profit to INR355m (US$4.24m) during the quarter ended 30 June 2024, compared to INR793m in the same quarter of 2023.

The company’s net revenue decreased by seven per cent in the first quarter of FY24-25 to INR20.97bn, down from INR22.49bn in the same period of FY23-24.

During the first quarter of FY24-25, sales volume was 4.4Mt, compared to 4.3Mt in the April-June quarter of 2023. This was due to weak demand amid general elections, the company stated.

Ramco is targeting a cement capacity of 30Mta by March 2026. It expects to achieve this target by commissioning a second line in Kolimigundla, along with de-bottlenecking of existing facilities and adding grinding capacity with minimal capital expenditure.

The India-based company has also announced its intention to sell off non-core assets worth about INR10m over the next 12 months.