Ramco Cements Limited has released its audited financial results for FY24, showcasing an impressive growth in sales volume and financial performance. The company recorded a sale volume of 18.40 million tons, marking a 22% increase from the previous fiscal year, the highest in the industry. Additionally, cement capacity utilization reached 83%.

Financial Highlights and Performance Improvements

The net revenue for FY24 stood at Rs. 9,392 crores, up 15% from Rs. 8,172 crores in FY23. The company’s strategic focus on the right products for the right applications has strengthened its brand and market presence. Earnings before interest, taxes, depreciation, and amortization (EBIDTA) saw a significant jump of 31%, reaching Rs. 1,595 crores, with a blended EBIDTA per ton of Rs. 867.

Cost Management and Green Power Utilization

Despite a 5% increase in raw material costs due to inflationary pressures, Ramco Cements managed to reduce its power and fuel cost per ton from Rs. 1,771 in FY23 to Rs. 1,389 in FY24. This reduction was largely attributed to the strategic shift in the utility of wind power for captive use, enhancing the overall green power usage from 22% in FY23 to 34% in FY24.

Expansion and Future Outlook

Ramco Cements is expanding its green energy capacity, with plans to increase the Waste Heat Recovery System (WHRS) capacity and wind power generation. The company is also doubling its clinker and cement capacity with substantial new projects lined up, which are expected to be operational by FY26.

Capex and Debt Management

The company has invested Rs. 1,922 crores in capital expenditures during FY24, with a projected capex of Rs. 1,200 crores for FY25. The net debt as of March 31, 2024, stood at Rs. 4,822 crores, with a net debt to EBIDTA ratio of 3.02 times.

Ramco Cements Limited’s FY24 performance highlights its robust growth trajectory and strategic focus on sustainability and efficiency. By integrating green energy solutions and expanding capacity, Ramco is not only enhancing its operational efficiency but also contributing positively to environmental sustainability. These initiatives are likely to bolster Ramco’s market leadership in the cement industry, driving long-term growth and shareholder value.

  Cement Industry Growth, FY24 results, green energy in cement production, Ramco Cements Limited, Ramco’s financial performance