Ramco Cements Reports 74.7% Drop in Q2 Net Profit, Revenue Declines 12.5%

Ramco Cements Ltd, based in Tamil Nadu, announced a 74.7% decline in net profit for the second quarter ending September 30, 2024. The company reported a profit of ₹25.6 crore, down from ₹101.3 crore in the same period last year. Revenue from operations also dropped 12.5%, reaching ₹2,038.2 crore, compared to ₹2,329.3 crore in Q2 FY24. Analysts had predicted a loss of ₹10 crore and revenue of ₹2,055 crore for the quarter.

The company’s EBITDA fell by 21.7%, amounting to ₹312.2 crore, down from ₹398.6 crore in the previous year’s second quarter. The EBITDA margin stood at 15.3%, slightly down from 17.1% year-on-year. Despite these challenges, the company exceeded analysts’ expectations, as the margin was predicted to be 12.6% for the quarter.

In line with its growth strategy, Ramco Cements had earlier announced an increase in cement grinding capacity at two plants. The capacity at the Kalavatala plant in Nandyal, Andhra Pradesh, was enhanced from 1.5 million tonnes per annum (MTPA) to 2 MTPA. Similarly, the Valapady grinding unit in Salem, Tamil Nadu, saw its capacity rise from 1.6 MTPA to 2 MTPA, following de-bottlenecking activities.

Ramco Cements shares closed at ₹872.90, reflecting a gain of ₹6.80, or 0.79%, on the Bombay Stock Exchange.