Ramco Cements profit dips on sluggish demand
The Ramco Cements Ltd.’s standalone net profit for the third quarter ended December 2019 slid by 6% to ₹94.80 crore on sluggish demand in its core markets coupled with pressure on prices due to active monsoon, said a top official.
During the period under review, the company posted a total revenue of ₹1,286 crore against ₹1,217 crore. It sold 28.44 lakh tonnes of cement against 27.47 lakh tonnes in the corresponding year-earlier period.
Demand in eastern markets was more visible during the current quarter but the prices, particularly in West Bengal, were very poor. However, and the trend in January 2020 had been positive with an improvement in prices, said A.V. Dharmakrishnan, MD & CEO, The Ramco Cements Ltd.
However, the operating cost continues to remain under control in view of favourable prices of fuels such as pet coke and diesel during the current quarter, he said.
He also said the company was constantly focussing on various cost reduction initiatives and improving productivity while maintaining the highest quality standards.
The company’s marketing initiatives of right products for right applications had attained the desired momentum. The company was making continuous efforts to optimise the supply chain efficiency.
Regarding the company’s expansion plans, he said against the proposed capital expenditure of ₹3,530 crore, the company, till December 2019, had spent more than 50% at ₹1,837 crore.
According to him, the expansion of grinding unit in Kolaghat, West Bengal from one million tonnes per annum (MTPA) to two MTPA was completed and unit commissioned during September 2019.
The new grinding unit at Haridaspur in Odisha with a capacity of 0.9 MTPA and the grinding unit near Visakhapatnam, whose capacity was expanded from 0.95 MTPA to 2 MTPA, would go on stream by March 2020.
The expanded clinkering capacity at the Jayanthipuram in Andhra Pradesh (from 3 MTPA to 4.50 MTPA) along with waste heat recovery system capacity of 27 MW was expected to be commissioned before December 2020.
The new cement plant at Kolimigundla, Kurnool District of Andhra Pradesh, with a clinkering capacity of 2.25 MTPA and cement capacity of 1 MTPA, would be commissioned before March 2021.
