Ramco Cements Faces Profits Slump Amid Market Challenges

The Ramco Cements Ltd reported a 64.2% drop in consolidated net profit for Q2 FY25 due to lower cement prices, while revenue fell by 12.66%. The drop in demand, attributed to monsoon season, caused reduced sales volume. Expenses decreased by 8.8%, with slight increases in raw material costs.

The Ramco Cements Ltd experienced a significant 64.2% plunge in consolidated net profit for the quarter ending September 2024, attributed primarily to a downturn in cement prices within the industry.

Revenue figures dipped 12.66%, from Rs 2,340.57 crore in the same quarter last year to Rs 2,044.13 crore now, according to the company's regulatory filing. The decline in sales volume amidst weak monsoon-driven demand also played a role.

Despite a cutback in expenses by 8.8%, the cost of raw materials rose slightly. On a positive note, capacity enhancements were achieved, expanding from 23 MTPA to 24 MTPA, with plans to reach 30 MTPA by March 2026 on track.

(With inputs from agencies.)