Source: CNBCTV18
Tamil Nadu-based The Ramco Cements Ltd on Thursday (May 22) reported a 74.5% year-on-year (YoY) decline in net profit at â¹31 crore for the fourth quarter that ended on March 31, 2025.
In the corresponding quarter of the previous fiscal, Ramco Cements posted a net profit of â¹121.4 crore. The CNBC-TV18 poll had predicted a profit of â¹117 crore for the quarter under review.
The company's revenue from operations dipped 10.5% to â¹2,392 crore as against â¹2,673 crore in the corresponding period of the preceding fiscal. The CNBC-TV18 poll had predicted revenue of â¹2,682 crore for the quarter under review.
At the operating level, EBITDA fell 23% to â¹320.8 crore in the fourth quarter of this fiscal over â¹417 crore in the corresponding period in the previous fiscal. The CNBC-TV18 poll had predicted an EBITDA of â¹430 crore for the quarter under review.
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EBITDA margin stood at 13.4% in the reporting quarter as compared to 15.6% in the corresponding period in the previous fiscal. The CNBC-TV18 poll had predicted a margin of 16.03% for the quarter under review.
FY25
Ramco Cements reported a marginal 1% growth in total sales volume (including construction chemicals) at 18.5 million tonnes for FY25, compared to 18.4 million tonnes in FY24. However, cement capacity utilisation dropped to 77% from 83% due to a 1.3 MTPA capacity addition during the year.
Net revenue for FY25 stood at â¹8,539 crore, down 9% from â¹9,392 crore in FY24, primarily due to a 10% year-on-year decline in cement prices. While cement revenue de-grew by 9%, revenue from construction chemicals rose 8% in FY25. EBITDA for the year fell 20% to â¹1,276 crore from â¹1,595 crore in FY24. Blended EBITDA per tonne dropped to â¹690 from â¹867, and the operating profit margin declined to 15% from 17%.
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Raw material costs per tonne remained flat year-on-year. Blended fuel consumption improved to $127/tonne (â¹1.53 per Kcal) from $149/tonne (â¹1.75 per Kcal) in FY24, bringing power and fuel cost per tonne down to â¹1,123 from â¹1,389. Green power usage rose to 36%, up from 34% in FY24. The clinker conversion ratio improved to 1.42 from 1.30, aiding cost management. Spot CIF prices of petcoke were in the $102â$105 range.
Interest expense for FY25 was â¹459 crore, compared to â¹416 crore in FY24, while depreciation rose to â¹691 crore from â¹636 crore due to the commissioning of new facilities. Profit before exceptional items and tax declined sharply to â¹126 crore from â¹543 crore in FY24.
However, the company reported â¹340 crore in profit from the sale of investments and surplus land, recognised as exceptional income. There was no current tax liability, and deferred tax expense stood at â¹48 crore, resulting in a net profit of â¹417 crore for FY25, up from â¹395 crore in FY24.
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As of March 31, 2025, net debt stood at â¹4,481 crore, with the company reducing debt by â¹340 crore during the year. The cost of debt rose slightly to 7.90% from 7.70% in FY24. Net debt to EBITDA was 3.51x in FY25 and is expected to fall to 2.50â2.75x in FY26, supported by further deleveraging and improved earnings.
The board has proposed a dividend of â¹2 per equity share (face value â¹1) for FY25. The results came after the close of the market hours. Shares of Ramco Cements Limited ended at â¹987.55, up by â¹9.35, or 0.96% on the BSE.
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