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Entry Price

630.00

Target

730.00

Recommend Date

22-06-2020

Return

15.87 %
BUY

Date : 22-06-2020

Ramco Cements’ revenue fell 9.2% YoY to | 1,394 crore (I-direct estimate: | 1,422 crore). This was mainly led by 11% fall in sales volume during the quarter to 2.93 MT (I-direct estimate: 3.10 MT) as its operation was impacted from mid-March due to imposition of lockdown. Realisations improved 2% YoY to | 4754/t (I-direct estimate: 4565/t).Total costs per tonne increased 3.3% YoY to | 3,798/t (I-direct estimate:| 3,712/t) led by higher other costs, that were up 29% YoY due to higher spend towards advertisement & sales promotion due to new launches of premium varieties of cement. All other cost heads like power, freight and raw materials were down 2.7%, 2.2% and 4.9% YoY, respectively, as commodity prices were benign. Thus, EBITDA margins fell 96 bps YoY to 20.1% (I-direct estimate: 19.1%) and EBITDA/t fell 2.6% YoY to | 956/t (I-direct estimate: | 876.t). Drop in volumes, profitability, dragged EBITDA down 13.3% YoY to | 280.4 crore (I-direct estimate: | 271 crore). In line with lower operating profit, PAT fell 10.8% YoY to | 145.7 crore. Ramco ended FY20 with total debt of | 3,024 crore.