South Indian cement producer Ramco Cements Limited has released its results for the quarter ended 31 December 2013.
3Q results
- The company witnessed a considerable 69.39% y/y fall in standalone net profit for the quarter ended 31 December 2013, which totalled Rs.255.9 million compared to Rs.836 million in the same quarter of the previous year.
- Net sales for the quarter witnessed a slight decrease of 3.7% y/y to Rs.8682 million, against Rs.9016 million for the same period a year earlier.
- Earnings per share stood at Rs.1.07, a 69.52% y/y fall from Rs.3.51 in the same quarter of the previous year.
India’s cement industry
The disappointing results reflect the slowdown in the Indian cement industry and economy as a whole. Southern Indian cement companies are operating at around 65% capacity, facing tough macroeconomic conditions, sluggish demand for cement and a lack of raw materials, and cement prices have fallen by approximately 5% in the last year. India’s lethargic economic growth is expected to continue throughout 2014 due to factors such as high inflation, high lending rates and a slowdown in demand.
Edited from various sources by Rosalie Starling