Ramco Cements targets Rs 1,200 cr capex in FY26, posts robust Asset

Monetisation of Rs 1,000 cr that is on line with what it had indicated earlier for capex for FY25. Also, the company has monetized non-core assets amounting to ₹443 cr this fiscal.

Capex in Q3 FY25 at ₹256 cr. Capex for nine months so far is ₹800 cr. Asset monetization consists of the sales of non-core assets valued at ₹1,000 cr. So far, ₹443 cr has been realized. Advances for the sale of assets that are nearly at completion worth ₹10 cr also have been drawn. The company is rightfully on track with the asset monetization target.

This fund also had asset sale proceeds applied towards the redemption of the ₹4,616 crore outstanding as of 31 December 2024. The company repaid debt to the tune of ₹487 crores during Q3FY25.

Expansion and Green Initiatives:

Ramco Cements is performing well to attain an average cement production capacity of 30 million tonnes per annum. Commissioning of a second production line and de-bottlenecking or additional grinding capabilities enhancing capacity at Kolimigundla are also covered in the timeline by March 2026. Completion of the Kolimigundla railway siding will also start on the same date that is, in 2025 march.

The company is continuing with its sustainability push, and the 10 MW Waste Heat Recovery System (WHRS) is scheduled to be commissioned by June 2025 at RR Nagar. A further 15 MW WHRS unit with Kiln Line-2 in Kolimigundla will be dedicated by March 2026. The new construction chemicals facility in Odisha will be ready by March 2025. Ramco has acquired 53% of mining lands and 13% of factory lands for the greenfield project in Karnataka.

Financial Performance:

Ramco Cements had a strong PAT in Q3FY25 at ₹325 crore, which more than doubled last year’s same period PAT at ₹93 crore. This improvement was largely helped by ₹329 crore exceptional income from the sale of investments and surplus land.

The company’s net revenue for the quarter came in at ₹1,988 crore, 6% lower over ₹2,113 crore in Q3FY24, mainly on account of a 14% YoY drop in cement prices. However, total sales volume, including construction chemicals, rose by 9% to 4.37 million tonnes. Cement capacity utilization marginally improved to 75% in Q3FY25 from 74% in the previous year.

EBITDA dropped 28% to ₹291 crore with cement prices declining despite cost savings and improved manufacturing efficiency.