Business

Ramco Cements net up 53.6% on cost control

Company to raise capacity to 20 MTPA

Ramco Cements Ltd. (RCL) registered a 53.6% increase in its standalone net profit for the first quarter ended June 2019 to ₹191.97 crore.

During the quarter, total revenue increased to ₹1,392 crore from ₹1,225 crore. Operating profit grew to ₹367 crore (₹255 crore). RCL sold 2.70 million tonnes against 2.61 million tonnes.

“Cost control measures and customer preference for new variety of cement that gave us premium and profit,” said A.V. Dharmakrishnan, CEO, Ramco Cements. Coal and pet coke prices have softened during the quarter. ln the fuel mix, pet coke usage was reduced to 42% from 62%, he said.

Asserting that RCL’s capacity expansion programme was on schedule, he said by end 2020, it would be enhanced to 20 million tonnes per annum (MTPA) from 12 MTPA

The expanded grinding unit in Kolaghat, West Bengal is to be commissioned soon. The new 0.9 MTPA grinding unit in Haridaspur, Odisha would be commissioned by October. The expansion of the Vizag grinding unit will be completed by March 2020, while that of the clinkering unit in Jayanthipuram by September 2020. The company would meet expansion costs through internal accruals and borrowings, he said.

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Printable version | Jul 10, 2020 8:18:04 PM | https://www.thehindu.com/business/ramco-cements-net-up-536-on-cost-control/article28872455.ece

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