Latest News | The Ramco Cements Q2 Profit Down 99 % at Rs 4 Cr
Get latest articles and stories on Latest News at LatestLY. The Ramco Cements on Wednesday reported 99.28 per cent decline in consolidated net profit at Rs 3.71 crore for September quarter 2022-23 on on account of sharp rise in fuel prices and weak cement rates.
New Delhi, Nov 9 (PTI) The Ramco Cements on Wednesday reported 99.28 per cent decline in consolidated net profit at Rs 3.71 crore for September quarter 2022-23 on on account of sharp rise in fuel prices and weak cement rates.
The company had logged a net profit of Rs 516.77 crore in July-September period a year ago, The Ramco Cements said in a regulatory filing.
Total income was up 19.21 per cent to 1,800.61 crore as against Rs 1,510.33 crore in the corresponding period of previous fiscal year.
Operating profit was down "mainly due to sharp increase in fuel price and weak cement prices," The Ramco Cements said in its earning statement.
The company could not pass on the full cost increase arising out of the sharp fuel price hike, to its customers, it added.
Total expenses in the quarter were Rs 1,783.06 crore, up 44.77 per cent from the year-ago period.
Its sale of cement was higher at 3.31 million tonne compared to 2.71 million tonne in September quarter of 2021-22.
In a separate filing, The Ramco Cements informed that its board has approved a proposal for establishing a new line at its grinding unit in Jajpur district, Odisha.
"The capacity of Line ll would be 0.90 million tonne per annum capacity and is proposed to be established at a cost of Rs 130 crore. Upon commissioning, the cement manufacturing capacity of the Haridaspur grinding unit would increase to 1.80 million tonne per annum," it added.
On the demand outlook, it said the business environment continues to be uncertain due to the rapidly changing economic environment in view of the geopolitical situation across the globe.
"This has put a strain on the fuel cost. Usually, the short-term visibility of the business prospects is more clear, but this time it is the other way around. This situation may continue for few more quarters considering the prevailing uncertainties, however the long-term prospects continue to be promising," it said.
Shares of The Ramco Cements on Wednesday settled at Rs 705 apiece on BSE, down 4.56 per cent from the previous close.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)