Ramco Cements Ltd (India) has shared financial results for the 2QFY24-35, highlighting that the company is on track to achieve its asset monetisation target as previously committed.
The company has stated that the 2QFY24-25 results exceeded expectations. Sales were reported at INR20.4bn (US$242.1m) for the quarter, down 2.4 per cent from the 1QFY14-25, and down 12.7 per cent from INR23.4bn the same period in the previous year. The company has reported sales volumes of 4.5Mt for the quarter, surpassing the company’s estimate of 4.2Mt.
EBITDA is also down for the quarter by 1.9 per cent, from INR3.2bn in the 1QFY24-25 to INR3.1bn in the 2QFY24-25. The result also marks a 22.6 per cent YoY decrease in EBITDA from INR4bn.
Meanwhile, at the Kalavatala plant, Ramco Cements carried out de-bottlenecking of cement grinding capacity, resulting in an increase of capacity from 1.5Mta to 2.0Mta. De-bottlenecking of cement grinding was also undertaken at the Salem (Valapaadi) unit, resulting in an increase of capacity from 1.6Mta to 2.0Mta. As a result, total cement grinding capacity has increased by 0.9Mta, from 23.14Mta to 24.04Mta. Ramco Cements is on track to reach a cement capacity of 30Mta by FY25-26E, with plans to commission a second line at Kolimigundla, debottleneck existing facilities and expand grinding capacities at existing locations with what the company describes as minimal capital expenditure.
