Ramco Cements slumps 7.8% as Q3 profit falls 59%

NEW DELHI – Shares of tumbled close to 8 per cent in early trade Tuesday as the company reported a 59 per cent decline in standalone profit in October-December to Rs 83 crore on account of faltering demand.

Sales from products, however, rose 16 per cent to Rs 1,541 crore for the quarter under review.

The company’s scrip fell to a low of Rs 827 against the previous close of Rs 896.90 on the BSE.

Higher cost of operations, including fuel cost, took a toll on the company’s bottomline, despite growth in cement sales.

Ramco Cements’ profit before tax fell 62 per cent at Rs 113 crore, against Rs 298 crore in the year-ago quarter, the company said in an exchange filing.

The company's net revenue for the December 2021 quarter grew 16 per cent to Rs 1,556 crore against Rs 1,345 crore reported in the quarter ending December 2020.

However, EBIDTA fell 41 per cent at Rs 238 crore compared to Rs 403 crore in the year-ago quarter due to a sharp increase in fuel price and drop in cement prices, reports quoting the company said.

The average increase in diesel prices by 22 per cent during the third quarter of the current financial year increased inbound/outbound logistics costs for the company, reports said.