The Ramco Cements stock ends lower post Q4 numbers

The Ramco Cements net profit jumped by 51.08% to Rs216.16cr in the quarter ended March 2021 as against Rs143.08cr during the previous quarter ended March 2020.

The stock has ended the day on a negative note, at Rs947.80 down by Rs24.9 or 2.56% from its previous closing of Rs972.70 on the BSE.

Sales have also increased 17.51% to Rs1623.71cr in the quarter ended March 2021 as against Rs1381.74cr during the previous quarter ended March 2020.

During the quarter ended 31-03-2021, the sale of cement for the company is 3.21 million tons, compared to 2.93 million tons in the corresponding period of the previous year with a growth of 10%. The utilisation rate based on clinker capacity for Q4 of CY is 92% as against 93% in Q4 of PY. The average lead distance of cement for Q4 of CY is 341 KMs as against 301 KMs in Q4 of PY. The outbound cement rail co-efficient for Q4 of CY is 12% as against 8% in Q4 of PY.

CAPEX
The expansion projects in Jayanthipuram and Kurnool are delayed due to pandemic caused by COVID-19. In both the project sites, the availability of manpower was disrupted intermittently since last 14 months. The clinkering unit of 1.5 MTPA in Jayanthipuram is expected to be commissioned during Q-1 of FY 2021-22.

The company has already commissioned 18 MW of WHRS out of 27 MW' during the FY 2020-21 and the balance 9 MW WHRS is expected to be commissioned during FY 2021-22. The clinkering unit of 2.25 MTPA in Kurnool is expected to be commissioned during Q2 of FY 2021-22. The 1 MTPA cement grinding facility, 12 MW of WHRS and 18MW of TPP in Kurnool are expected to be commissioned during FY 2022-23.

During the FY20-21, the company has incurred Rs1,766cr towards capex, including for the above-mentioned ongoing capacity expansion programme, out of which a sum of Rs600cr were incurred during the quarter ended March 31, 2021.

The Board of Directors have declared interim dividend of Rs3 per equity share for the financial year 2020-21 on March 12, 2021. Accordingly, the company has paid Rs70.84cr towards interim dividend including TDS on dividends.

The Board of Directors have recommended this to be the total dividend for the financial year 2020-21. The company has paid dividend of Rs2.50 per equity share amounting to Rs71.07cr including dividend distribution tax for the financial year 2019-20.