The Ramco Cements Ltd, a leading manufacturer of cement in South India, has reported a 34% dip in its first quarter standalone net profit at ₹112 crore due to sharp increase in fuel and input costs and weak cement prices.
The firm posted a 45% jump in revenue from operations to ₹1,749 crore.
Total expenditure rose 65% to ₹1,626 crore, of which raw material cost increased by 47% (₹216 crore). Power and fuel cost more than doubled to ₹524 crore while transportation cost surged by 57% to ₹360 crore , it said in a statement.
The company sold 33 lakh tonnes of cement (21 lakh tonnes). Windfarms generated 7.71 crore units (7.01 crore units).
The average increase in diesel prices by 11% resulted in an increase of all in-bound/out-bound logistics cost. The average price of pet coke increased by 90%. The average price of imported coal meant for thermal power plant also increased by 50%, the company said.
Since fuel prices peaked in the first quarter, the power and fuel cost per tonne of cement sharply increased to ₹1,584 from ₹1,031. The company could not pass on the full cost increase, arising out of sharp fuel price hike, to its customers.
However, the operation of waste heat recovery system (WHRS) in Jayanthipuram has helped to moderate the overall power and fuel cost to some extent, it said.
Regarding expansion plans, the company said trial production at its Kurnool clinkering plant was successful and the unit was running well. With this, the clinkering capacity had gone up to 13.65 MTPA.
The cement grinding facility and 6 MW of WHRS in Kurnool will be commissioned in August. With this, the installed capacity of cement will go past 20 MTPA. Balance 6.15 MW of WHRS will be commissioned by March 23. The modernisation of RR Nagar plant along with lime stone beneficiation plant will be commissioned in March.
The company also proposes to expand the capacity of its dry mix product units in Tamil Nadu, Odisha and Andhra Pradesh to produce high-value products and other regular dry-mix products. The two units in TN will be commissioned in FY23 and the remaining two units in AP & Odisha by FY24.
During the period, the company incurred ₹482 crore towards capex. As of June, the net debt stood at ₹4,148 crore, of which ₹450 crore is short-term 1oan.
