Ramco Cements' Q1 FY25 Profit Skids Amid Election-Induced Demand Dip

The Ramco Cements Ltd reported a significant decline in net profit for the June 2024 quarter, attributed to a fall in cement prices and weak demand due to the Lok Sabha elections. Despite a slight increase in sales volume, revenue and net income dropped substantially, accompanied by rising raw material costs.

The Ramco Cements Ltd on Thursday reported a 50.82 per cent decline in its consolidated net profit to Rs 36.57 crore for the June 2024 quarter, attributing the drop to falling cement prices and weak demand driven by the Lok Sabha polls.

In the same quarter last year, the company posted a substantially higher net profit of Rs 74.36 crore, as per a regulatory filing. Revenue from operations also decreased 6.81 per cent to Rs 2,093.55 crore, down from Rs 2,246.66 crore during the same period the previous year.

The downfall in net revenue for Q1 FY25 is primarily due to an 8 per cent drop in cement prices, a company's earnings statement revealed. Additionally, the cost of raw materials surged by 9 per cent YoY, climbing from Rs 911 to Rs 990 per tonne due to inflationary pressures.

(With inputs from agencies.)