The Ramco Cements (RAMCOCEM) Q1 24/25 earnings summary

Executive summary

• GDP growth forecast for India raised to 7.2% for FY25, with infrastructure spending and housing initiatives expected to boost cement demand.

• Unaudited standalone and consolidated financial results for the quarter ended 30 June 2024 were approved by the Board on 25 July 2024 and reviewed by auditors with an unmodified opinion.

• The business operates as a single segment: cement and cementitious materials.

• Cement sales volume up 1% YoY to 4.36 MnT, but average cement prices dropped 8% YoY, impacting margins.

• Profit before tax down 55% YoY and profit after tax down 55% YoY due to weak pricing and higher costs.

Financial highlights

• Standalone revenue from operations for Q1 FY25 was ₹2,088.37 crore, down from ₹2,241.09 crore in Q1 FY24 and ₹2,673.30 crore in Q4 FY24.

• Consolidated revenue from operations for Q1 FY25 was ₹2,093.55 crore, compared to ₹2,246.66 crore in Q1 FY24 and ₹2,678.24 crore in Q4 FY24.

• EBITDA at ₹328 crore, down 6% YoY; EBITDA margin at 16%.

• Standalone net profit after tax for Q1 FY25 was ₹35.50 crore, compared to ₹78.91 crore in Q1 FY24 and ₹121.39 crore in Q4 FY24.

• Cash profit at ₹79 crore, down 70% YoY.

Outlook and guidance

• Demand outlook positive in Andhra Pradesh with new government; overall demand affected by elections and monsoon.

• Capex for FY25 estimated at ₹1,200 crore; cement capacity to reach 30 MTPA by Mar-26.

• Building products business expected to cross ₹500 crore annual revenue in next 2 years.

• The company is monitoring the impact of pending labor law changes; no financial impact recognized yet.