- 23 May 2025
- ICICIdirect Research
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RAMCO CEMENTS REVENUE DECLINED BY 10.5% YOY TO RS 2397.3 CRORES
News- Revenue declined by 10.5% YoY to Rs 2397.3 crores, on account of lower sales volume (5.29 mtpa, -3.7% YoY) and decline in realization (-7.1% YoY). Sequentially, revenue was up 20.9%, led by higher volume (+21.1% QoQ) and flattish QoQ realization. Total cost/ton is down 4.5% YoY (flat QoQ), primarily led by lower power & fuel cost and freight cost. However, EBITDA/ton declined by 20.9% YoY (-5.5% QoQ) to Rs 603/ton, mainly on account of lower realisation. Subsequently, EBITDA was down 23.8% YoY (+14.4% QoQ) to Rs 319.2 crores. At PAT level, company reported a profit of 14.82 crores (adjusted for an exceptional item of Rs 10.8 crore related to land sale) as against profit of Rs 128.03 crore in Q4FY24 and loss of Rs 7 crore in Q3FY25 (adjusted for exceptional items in Q3). For FY25, revenue is down by 9.2% YoY, on account of lower realization (-9.7% YoY) and flattish volume growth. FY25 EBITDA/ton stands at Rs 666/ton (vs Rs 851/ton in FY24).
View- Overall operational performance during the quarter was impacted significantly due to lower realisations. However, we expect that profitability would improve going forward led by demand pick-up and price hikes in south/east region and focus on cost reduction. On the capacity expansion front, company is in process of increasing its total capacity to 30 mtpa by FY26E (from 24.4 mtpa at present), which gives healthy volume growth visibility. Company is also in the process of monetizing its non-core assets (Rs 460 crore already been monetized out of targeted value of Rs 1000 crore), which would be utilised in capex and debt reduction
Impact- Neutral