- 09 Feb 2024
- ICICI Securities
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RAMCO CEMENTS'S REVENUE INCREASED IN Q3FY24
RAMCOCEM - 1063 Change: 7.75 (0.73 %)News: Revenue increased by 4.9% YoY (-9.8% QoQ) to Rs 2110.9 crore, as cement sales volume increased by 9.7% YoY (-13.6% QoQ) to 3.92 million tonnes (mtpa). Blended realisation at Rs 5389/ton was down by 4.4% YoY (+4.4% QoQ) as cement prices remained lower YoY in south region. EBITDA was up by 40.1% YoY (-2.2% QoQ) to Rs 396.5 crore as margin improved substantially on lower power & fuel cost and positive operating leverage. EBITDA/ton was up by 27.7% YoY (+13.1% QoQ) to Rs 1012/ton. PAT was up 28% YoY (-16.7% QoQ) to Rs 84.0 crore. For 9MFY24, revenue is up 20% YoY (led by 25% volume growth) with EBITDA/ton stands at Rs 902/ton (vs Rs 769/ton in 9MFY23).
Views: Cement volumes during the quarter were impacted in Tamil Nadu and Andhra Pradesh due to the extreme heavy rainfall and the subsequent flooding. However, volume growth of ~10% YoY remains better than industry led by timely capacity additions. Cement capacity utilisation stood at 74%. Cement prices remain lower YoY in south region and impacted the realisations. EBITDA/ton improved sharply on YoY basis led by lower fuel prices and positive operating leverage. Going ahead, volume growth expected to remain healthy led by capacity additions. Company targets to reach cement capacity of 26 mtpa by FY26E from 22 mtpa at present.
Impact: Neutral