According to local reports, Indian cement producer Ramco Cements recorded a net profit of Rs.24.66 crore in 4Q14 (ended 31 March 2014). This represents a 61% y/y fall compared to a net profit of Rs.64.15 crore recorded in the corresponding quarter in 2013. The fall in profit was attributed to sluggish demand, as a result of tough macroeconomic conditions.
During the reporting period, sales of cement (including exports) rose slightly from 22.09 lakh t in 4Q13 to 22.47 lakh t in 4Q14, while revenue increased by 3% y/y to Rs.987.31 crore. Operating costs increased by approximately 11% due to the depreciation of the rupee, which impacted the cost of imported coal and petcoke.
A V Darmakrishnan, MD of Ramco Cements, noted that a slowdown in the construction sector and spending on infrastructure, as well as a lack of materials such as sand, were all factors that affected profitability in 4Q14. However, with a currently stable political situation both in central India and in Andhra Pradesh, Darmakrishnan remained positive about the company’s operations in 2014.
Edited from various sources by Rosalie Starling
Read the article online at: https://www.worldcement.com/asia-pacific-rim/23052014/ramco_cements_records_a_fall_in_4q_net_profit_240/