The utilisation rate based on clinker capacity for Q4FY21 was 92% as against 93% in Q4FY20. The average lead distance of cement for Q4FY21 was 341 KMs as against 301 KMs in Q4FY20. The outbound cement rail co-efficient for Q4FY21 was 12% as against 8% in Q4FY20.

Performance for quarter ended March 2021

Ramco Cements consolidated total income from operation inclined 17% to Rs 1,633.73 crore for the fourth quarter ended March 2021, due to increase in sales volume in favourable markets. The cement sales volume (including exports) rose 9.6% to 32.10 lakh tonne.

OPM improved by 740 bps to 27.5%. As per percentage to sales and net of stock adjustments, Raw material cost increased from 13.37% to 14.23%, Employee cost decreased from 6.17% to 6.07%,   Other expenses fell from 60.70% to 52.19%, Selling and administration expenses fell from 21.41% to 21.12%,  Cost of Sales fell from 34.56% to 33.57%,  Inventories cost fell from 1.79% to 0.09%, Power and Oil fuel cost fell from 17.92% to 15.17%, and Freight charges fell from 5.06% to 4.08%. Thus, the operating profit (OP) grew by whooping 60% to Rs 448.97 crore.

The Other income declined by 21% to Rs 7.80 crore. The interest cost dropped 30% to Rs 15.18 crore. Depreciation cost rose 15% to Rs 96.11 crore. As a result, the Profit before Tax (PBT) inclined 87% to Rs 345.48 crore.

The net tax expenses for the quarter increased 237% to Rs 133.21 crore. Thus, the PAT before MI and Share in Profit of Associates grew 46% at Rs 212.27 crore. After accounting inflow of 3.65 crore in Share in Profit of Associates and Rs 0.24 crore in Minority interest, the Net Profit, as a result, grew by 51% to Rs 216.16 crore.

Annual Financial Performance

For the financial year ended March 2020 (FY 2020), consolidated sales revenue declined by 2% to Rs 5,291 crore. The cement sales volume (including exports) declined 10.9% to 99.80 lakh tonne.

The utilisation rate for the based on clinker capacity stood at 73% as against 90% in the corresponding previous year. During the FY 2020-21 southern markets have de-grown due to COVID-19, prolonged monsoon whereas in the eastern markets volumes have grown. The average lead distance of cement for FY 2020-21 is 327 KMs as against 288 KMs in previous year. The outbound cement rail co-efficient was 10% for FY 2020-21 as against 6% in corresponding previous year. Trade to non-trade mix ratio remained at 76:24.

With expansion of OPM by 810 bps to 29.4%, the operating profit went up by 36% to Rs 1,557.31 crore.

The average increase in diesel prices by 11% during the year has pushed up the cost of all inward materials. The CIF prices of pet coke have increased from 70$ to 110$ during the year. However, the company's overall power and fuel cost for the FY2020-21 is reduced due to cost benefits of fuel stock built at lower prices in earlier quarters and increased usage of relatively low priced fuel viz., imported coal and alternate fuel. Pet coke in overall fuel mix for the FY 2020-21 is 41% as against 48% in the previous year.

During the FY 2020-21, the procurement cost of HOPE bags has increased due to sharp hike in polymer prices and supply chain constraints due to COVID-19.

The operations of 18 MW WHRS in Jayanthipuram have also helped to manage the power cost better during the last two quarters. The overall blending ratio for the current yea r has improved by 3% from the previous year.

During the FY 2020-21, the company has expensed Rs.19.54 crores towards ESOP expenses on pro-rata basis for the options granted to its employees, out of which a sum of Rs.3.19 crores were expensed in the quarter ended 31-03-2021. Though the lower sa les volume during FY 2020-21 had resulted in under-absorption of overheads, the company has ta ken various effective austerity measures that has resulted in reduction of overall overheads.

Other income was down 9% to Rs 30.37 crore, thus, PBIDT increased by 34% at Rs 1,587.68 crore. Further with jump in interest cost by 21% to Rs 87.62 crore, along with rise in depreciation allowance cost by 13% to Rs 356.56 crore, the PBT grew by 44% to Rs 1,143.50 crore.

Net Taxation outgo increased 102% to Rs 379.92 crore. Thus, the PAT before MI and Share in Profit of Associates advanced 26% to Rs 763.58 crore. After accounting inflow of 20.75 crore in Share in Profit of Associates and Rs 0.69 crore in Minority interest, the Net Profit, as a result, grew by 30% to Rs 783.64 crore.

During the quarter ended 31-03-2021, windfarms have generated 1.60 crore units as against 1.99 crore units in the previous corresponding period. The income for the quarter ended March 2021 from the wind power business is Rs.2.54 crore as against Rs.4.44 crore in the previous corresponding period. The operating expenses for the quarter ended March 2021 was Rs.8.37 crore as against Rs.5.22 crore during the previous corresponding period.

For FY2021, windfarms have generated 21.41 crore units as against 22.68 crore units in the previous year. The income for the FY 2020-21 from the wind power business was Rs.56.42 crore as against Rs.58.07 crore in the previous year. The operating expenses for the FY 2020-21 were Rs.24.99 crore as against Rs.20.80 crore during the previous year. During the FY 2020-21, the company has received Rs.139.12 crore from TN EB, out of which Rs.61.02 crore received during the quarter ended March 2021. The receivable from TNEB on 31-3-2021 was around Rs.38 crore.

RAMCO WlNDFARMS: For FY2021, the generation of power was 3.27 crore units as against 3.59 crore units in the previous year. The revenue from operations and EBIDTA for year ended March 2021 was Rs.13.13 crore and Rs.7.72 crore as against Rs.14.38 crore and Rs.9.50 crore respectively in the previous year.

RAMCO INDUSTRIAL & TECHNOLOGY SERVICES: For FY2021, the revenue from operations and EDIDTA was Rs.37 crore and Rs.1.64 crore as against Rs.40.94 crore and Rs. 1.34 crore respectively in previous year.

CAPACITY EXPANSION

The company 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 Q-2 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 FY 2020-21, the company has incurred Rs. 1,766 crore towards capex, including for the above-mentioned ongoing capacity expansion programme, out of which a sum of Rs. 600 crore were incurred during the quarter ended 31-03-2021.

BORROWINGS

The company's gross debt as on 31-03-2021 is Rs. 3,102 crore, out of which Rs.217 crore is soft/interest-free debt. The average cost of interest-bearing borrowings for the current year is reduced to 6.10% from 6.71% in the previous year. The net debt to EBIDTA is 1.89 times as on 31-03-2021 as against 2.52 times in the previous year.

The scrip closed trading at Rs 972.70 (24 May 2021) on the BSE.