The Ramco Cements Net Revenue Grows By 26% To ₹2,249 Cr In Q1FY24

The Ramco Cements Limited on Monday announced its results for the quarter ended June 30, 2023, the company announced through an exchange filing.

Sales volume

During Q1FY24, the sale volume was 4.30 million tons, compared to 3.34 million tons in the 01FY23 with a growth of 29 percent. The cement capacity utilisation for the Q1FY24 was at 79 percent.

Net revenue and EBIDTA

Net revenue for the Q1FY24 was Rs 2,249 crores as against Rs 1,779 crores during Q1FY23 with a growth of 26 percent. EBIDTA for Q1FY24 is Rs 349 crores as against Rs 308 crores during 01FY23 with growth of 14 percent. EBIDTA margin was affected due to elevated fuel prices and weak cement prices in the markets where the company operate. Blended EBIDTA per ton for the Q1FY24 was Rs 812 as against Rs 921 during Q1FY23. Operating ratio for Q1FY24 was 16 percent as against 17 percent in Q1FY23.

Power and Fuel

The average decrease in diesel prices by 4 percent during the Q1FY24 has resulted in marginal reduction of all in-bound / out-bound logistics cost. During the Q1FY24, the blended fuel consumption per ton for cement was equivalent to $ 170 (Cost per Kcal: Rs 2.03) as against $ 157 (Cost per Kcal: Rs 1.87) during Q1FY23.

The power & fuel cost per ton of cement after adjustment of changes in inventories for Q1FY24 has increased to Rs 1,669 from Rs 1,5541 in Q1FY23.

The overall green power usage has significantly improved from 19 percent in Q1FY23 to 29 percent in Q1FY24 in view of change in utility of wind power to captive purposes.

Interest cost

Interest cost for the Q1FY24 was Rs 93 crores as against Rs 47 crores during the Q1FY23. The effective average cost of borrowing for Q1FY24 was 7.68 percent as against 5.41 percent in the Q1FY23. Depreciation for the Q1FY24 was Rs 148 crores as against Rs 106 crores during the Q1FY23.

Profit before tax

Profit before tax for Q1FY24 was Rs108 crores as against Rs 154 crores during the Q1FY23 with a de-growth of 30 percent.

The company has incurred Rs 284 crores during Q1FY24 for the above-mentioned capacity expansion including regular capex. The net debt as on June 30, 2023 was Rs 4,406 crores, out of which Rs 479 crores was for working capital. The average cost of interest-bearing borrowings for the Q1FY24 increased to 7.95 percent from 6.66 percent in FY23.