Ramco Cements reports robust growth in Q3FY24 amidst market challenges
Ramco Cements Limited, a leader in the Indian cement industry, has announced its un-audited results for the third quarter of the financial year 2024 (Q3FY24), demonstrating remarkable resilience and growth amidst challenging market conditions. The company recorded a sale volume of 4 million tons during the quarter, marking a 10% increase from 3.64 million tons in Q3FY23. This growth comes despite the adverse effects of extreme rainfall and flooding caused by cyclone Michaung in Tamil Nadu and Andhra Pradesh, which impacted cement demand in these regions.
The company’s strategic focus on right product placement and brand strengthening has yielded a net revenue of Rs. 2,113 crores, a 5% growth compared to Rs. 2,018 crores in Q3FY23. The EBITDA for Q3FY24 stood at Rs. 402 crores, witnessing a substantial 37% increase from Rs. 294 crores during the same period last year, with the operating ratio improving to 19% from 15% in Q3FY23.
Amidst inflationary pressures, Ramco Cements has managed to slightly reduce logistics costs through decreased lead distances and achieved significant reductions in power and fuel costs per ton of cement, thanks to its increased utilization of green power from 20% in Q3FY23 to 36% in Q3FY24. The transition towards greener energy sources is highlighted by the company’s ongoing investment in Waste Heat Recovery Systems (WHRS) and wind energy, aiming to further reduce reliance on fossil fuels.
Ramco Cements Sets New Benchmarks in Efficiency and Sustainability for Q3FY24
The company has undertaken significant capacity expansion and de-bottlenecking efforts, including increasing clinker capacity and planning for a substantial increase in cement and clinker capacity by FY26. These strategic initiatives are aimed at enhancing production efficiency and meeting growing market demands.
Despite the market’s challenges, including rising interest and depreciation costs due to new plant commissions, Ramco Cements has maintained a strong financial position, with a profit before tax of Rs. 135 crores for Q3FY24. The company’s dedication to sustainability and efficiency, along with its ambitious capacity expansion plans, positions Ramco Cements as a key player in India’s journey towards sustainable development and environmental stewardship in the cement industry.