 |
Results
10-Feb-16
|
|
|
|
|
|
|
|
Analysis
|
|
|
|
The Ramco Cement
|
|
Q3 margin improves on better realization
|
|
|
|
|
|
The healthy cement realisation and continued focus on cost reduction measures has supported the Ramco Cements to post 389% jump in consolidated net profit to Rs 117.39 crore for the third quarter ended December 2015. The consolidated total income from operations rose 1% to Rs 821.21 crore, due to fall in cement sales volume and drop in windmill business revenue. OPM has expanded to 30.8% from 15.9% corresponding previous quarter, due to all-round cost reduction measures partially offset by increase in royalty on limestone and provision for DMF.
Performance for quarter ended December 2015
Ramco Cements consolidated total income from operation inclined 1% YoY to Rs 821.21 crore for the third quarter ended December 2015, due to rise in cement sales realisation offset by fall in cement sales volume and drop in windmill business revenue. The cement sales realization rose 6.5% to Rs 5049 per tonne, but cement sales volume (including exports) dropped 5.4% to 16.26 lakh tonne.
The sale of cement in Tamil Nadu was affected during the third quarter due to record rain and its consequential inundation in various parts of the state. However, the production facilities have not been affected. The sale of surplus power from captive thermal power plants has also been affected during the third quarter in view of low demand from TNEB side.
The Operating Margin (OPM) expanded to 30.8% from 15.9% in the corresponding previous quarter, due to continued focus on cost reduction measures. As per percentage to sales and net of stock adjustments, power & fuel cost dropped 520 bps to 14.2%, freight & handling cost shed 420 bps to 18.2%, other costs shed 370 bps to 12.5% and raw material cost fell 280 bps to 15.9%. However, employee benefit cost rose 80 bps to 7.9% during the period.
However, the reduction in operating cost was partly offset due to (1) Increase in Royalty of Limestone from Rs 63 per tonne to Rs 83 per tonne with effect from 1st September 2014. (2) Contribution to District Mineral Foundation (DMF) as per Mines and Minerals (Development and Regulation) Amendment Act, 2015, has impacted on cost of cement. (3) The Rupee depreciation has made cost of imports dearer.
As a result, the operating profit grew by 95% to Rs 253.06 crore. The Other income rose 2% to Rs 1.83 crore. The interest cost fell 14% to Rs 42.26 crore due to repayment and replacement of loans. Depreciation cost gained 8% to Rs 68.28 crore. As a result the Profit before Tax (PBT) inclined to Rs 144.35 crore from Rs 19.42 crore corresponding previous quarter.
The net tax expense for the quarter stood at Rs 27.09 crore, compared with tax credit of Rs 2.51 crore corresponding prior quarter. Thus, the company's PAT gained by 435% to Rs 117.26 crore. After accounting Minority interest outgo of Rs 0.13 crore as against outgo of Rs 0.29 crore in corresponding previous quarter and NIL Share of profits from associates as against Rs 1.79 crore in corresponding previous quarter, Net profit surged by 389% to Rs 117.39 crore.
Performance for nine months ended December 2015
For the nine months ended December 2015 (9MFY 2016), Sales revenue for the period was down 2% to Rs 2670.33 crore. With expansion of OPM to 30% from 19.1% in corresponding previous period, the operating profit went up by 53% to Rs 800.01 crore. Other income was up 1% at Rs 6.06 crore, thus, PBIDT jumped 53% at Rs 806.07 crore. Further with drop in interest cost by 7% to Rs 137.30 crore but gain in depreciation allowance cost by 7% to Rs 202.87 crore owing to Companies Act 2013 coming into effect, the PBT grew 142% to Rs 465.90 crore. With jump in taxation provision by 163% to Rs 110.54 crore, the PAT was up by 136% to Rs 355.36 crore. After accounting Minority interest outgo of Rs 0.41 crore and Share of profits from associates of Rs 2.81 crore, Net profit grew by 132% to Rs 352.14 crore.
Annual Financial Performance
For the financial year ended March 2015, sales revenue was almost flat at Rs 3732.20 crore, as decline in sales volume offset rise in realisation. The cement sales realization rose 12% to Rs 4784 per tonne, but cement sales volume (including exports) dropped 10.8% to 76.68 lakh tonne.
On segment wise, revenue of the cement segment, which constitutes about 98% of total segment sales, was flat at Rs 3668.23 crore and windmill segment which constitute about 2% of total sales revenue dropped by 1% to Rs 82.94 crore.
OPM expanded by 480 bps to 21.3%, leading to rise in the operating profit by 29% to Rs 796.75 crore.
At segment level, PBIT of cement segment grew 79% to Rs 571.93 crore while it was up 27% to Rs 28.98 crore for windmill segment. Margins of cement segment improved 690 bps to 15.6% while windmill segment margin grew 780 bps to 34.9%.
Other income was marginally higher at Rs 8.07 crore, thus, PBIDT jumped by 29% at Rs 804.82 crore. Further with 4% rise in interest cost to Rs 195.14 crore but drop in depreciation allowance cost by 18% to Rs 251.24 crore owing to Companies Act 2013 coming into effect, the PBT grew to Rs 358.44 crore from Rs 131.01 crore in corresponding previous period. The effective tax rate increased to 32% from 12.6% in the year-ago period, thus, PAT has widened to Rs 246.13 crore from Rs 114.55 crore corresponding previous period. After accounting Minority interest outgo of Rs 0.38 crore and Share of profits from associates of Rs 2.81 crore, Net profit grew to Rs 246.13 crore from Rs 114.55 crore in the year-ago period.
The scrip is currently trading at Rs 450.75 (09 February 2016) on the BSE.
|
|
|
|
Previous News |
The Ramco Cements consolidated net profit declines 36.41% in the June 2022 quarter
(
Results
-
Announcements
01-Aug-22
13:51
)
|
|
|
The Ramco Cements
(
Results
-
Analysis
26-Jul-24
06:28
)
|
|
|
Volumes soar at The Ramco Cements Ltd counter
(
Hot Pursuit
-
01-Jun-23
11:00
)
|
|
|
The Ramco Cements commissions cement line in Tamil Nadu
(
Hot Pursuit
-
28-Jun-23
08:49
)
|
|
|
The Ramco Cements consolidated net profit rises 51.08% in the March 2021 quarter
(
Results
-
Announcements
24-May-21
15:30
)
|
|
|
The Ramco Cements consolidated net profit rises 27.23% in the March 2023 quarter
(
Results
-
Announcements
18-May-23
15:59
)
|
|
|
Ramco Cements commissions 3MW waste heat recovery system
(
Corporate News
-
04-Sep-23
18:03
)
|
|
|
The Ramco Cements
(
Results
-
Analysis
25-Oct-21
20:20
)
|
|
|
The Ramco Cements to declare Quarterly Result
(
Corporate News
-
12-Jul-21
10:18
)
|
|
|
Ramco Cements records PAT of Rs 515 crore in Q2 FY22
(
Hot Pursuit
-
25-Oct-21
13:49
)
|
|
|
The Ramco Cements fixes record date for interim dividend
(
Market Beat
-
Reports
03-Mar-20
13:28
)
|
|
|
|
|
|
Other Stories |
|
|
|
|
|
|
|
|
|
|
|
|
|