The Ramco Cements Ltd., has embarked on a ₹1,095 crore programme to expand the capacity of grinding units, said a top official.
“We are doubling the capacity of grinding units in Vizag and Kolaghat (West Bengal) from 0.9 million tonnes to 2 million tonnes per annum each,” said A.V. Dharmakrishnan, CEO, Ramco Cements. “Besides, we are setting up a new unit in Odisha of 0.9 million tonnes.”
Internal accruals
The proposed expansion will be completed in 18 months and the cost will met be through internal accruals and borrowings.
After the proposed expansion, the capacity of grinding units is set to increase from 4 million tonnes to 7.1 million tonnes. “This would further increase our presence in Andhra Pradesh, Odisha and West Bengal,” he said.
Severe drought and shortage of river sand in Tamil Nadu, coupled with an increase in fuel prices impacted the financials in the first quarter ended June 30.
The company reported a flat growth in its standalone net profit at ₹156 crore. Total income increased to ₹1,194 crore from ₹1,124 crore in the year-earlier period.
The company reported a 4% increase in overall sales at 21.50 lakh tonnes against 20.66 lakh tonnes.
“But, we had degrown by 12% in Tamil Nadu; it affected the overall performance of the company. The impact due to demonetisation and the Goods and Services Tax were minimal,” Mr. Dharmakrishnan said.
On the buyback of shares, he said the company had purchased close to 25 lakh shares in the open market at ₹167 crore.
Ramco Industries
Ramco Industries’ standalone net profit for the first quarter ended June 30, dipped 48% to ₹15.73 crore from ₹30.25 crore due to an increase in the cost of raw materials.
Total income rose to ₹272 crore from ₹260 crore.
