Business

Ramco Cements Q4 net dips 42% on sharp rise in fuel prices

The Ramco Cements Ltd. has posted a 42% drop in its standalone net profit for the fourth quarter ended March to ₹124 crore following a sharp increase in fuel prices and weak cement prices.

Revenue from operations grew by 4.5% to ₹1,698 crore. Cement sales contracted by 1% to 31.92 lakh tonnes.

During the period under review, diesel prices on an average increased by 20%, pet coke by 89% and prices of imported coal from Indonesia by 138%, it said in a regulatory filing.

Stating that the industry was not able to pass the full cost to the customers, the company said that since fuel prices peaked during FY22, the power and fuel cost per tonne of cement rose to ₹1,257 from ₹797.

The company, meanwhile, opted for lower tax rate for FY22. Consequently, it was entitled to write-back the excess deferred tax provision of ₹306 crore. Hence, the net profit was higher by ₹306 crore.

The company proposes to expand the capacity of its dry mix products in Tamil Nadu, Odisha and Andhra Pradesh to produce high-value products. The two units in Tamil Nadu will be commissioned in FY23 and the remaining two units in AP & Odisha by FY24.

The board declared a dividend of ₹3 per share.


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Printable version | Jun 16, 2022 2:35:50 pm | https://www.thehindu.com/business/ramco-cements-q4-net-dips-42-on-sharp-rise-in-fuel-prices/article65453591.ece