Ramco Cements Q1 net dips 34% on rising fuel cost, weak prices

The firm posted a 45% jump in revenue from operations to ₹1,749 crore

The Ramco Cements Ltd, a leading manufacturer of cement in South India, has reported a 34% dip in its first quarter standalone net profit at ₹112 crore due to sharp increase in fuel and input costs and weak cement prices.

The firm posted a 45% jump in revenue from operations to ₹1,749 crore.

Total expenditure rose 65% to ₹1,626 crore, of which raw materials accounted for 47% (₹216 crore). Power and fuel cost more than doubled to ₹524 crore while transportation cost suged by 57% to ₹360 crore , it said in a statement.

The company sold 33 lakh tonnes of cement (21 lakh tonnes). Windfarms generated 7.71 crore units (7.01 crore units).

The average increase in diesel prices by 11% resulted in an increase of all in-bound/out-bound logistics cost. The average price of pet coke increased by 90%. The average price of imported coal meant for thermal power plant also increased by 50%, the company said.

Since fuel prices peaked in the first quarter, the power and fuel cost per tonne of cement sharply increased to ₹1,584 from ₹1,031. The company could not pass on the full cost increase, arising out of sharp fuel price hike, to its customers.

However, the operation of waste heat recovery system (WHRS) in Jayanthipuram has helped to moderate the overall power and fuel cost to some extent, it said.