BUSINESS

Ramco to move SC against NCLAT ruling on CCI penalty

The Ramco Cements Ltd. is planning to move the Supreme Court against the July 25 order of the National Company Law Appellate Tribunal (NCLAT) dismissing the appeal made by it and others in the case related to alleged cartelisation.

On July 25, the NCLAT had dismissed the cement manufacturers’ plea challenging the order of the Competition Commission of India (CCI) imposing a penalty of Rs. 6,700 crore for alleged cartelisation.

‘No provision made’

“As Ramco believes that it has a good case, it has decided to go on an appeal to the Supreme Court, and, hence, no provision is made,” the company said in a statement.

During August 2016, CCI had slapped Rs. 6,700 crore penalty on 11 cement firms, including UltraTech, ACC, Ambuja, Ramco, JK Cement and the Cement Manufacturers’ Association (CMA), for indulging in cartelisation.

In the case of Ramco Cements, CCI had imposed a penalty of Rs. 258.63 crore.

Ramco Cements reported an almost 20% dip in standalone net profit for the quarter ended June 30, 2018, to Rs. 124.98 crore from Rs. 156.04 crore in the year-earlier period. Revenue from operations stood at Rs. 1,185.97 crore against Rs. 1,150.49 crore.

Another group company Ramco Industries Ltd. reported 37% increase in net profit for the first quarter ended June 30, 2018, to Rs. 21.60 crore against Rs. 15.73 crore in the year-earlier period on higher revenue.

During the period, the company posted sales income of Rs. 299.05 crore (Rs. 257.54 crore).