India's Ramco Cements posts near-23% rise in Q4 profit

Ramco Cements

18/05/2023 11:45

BENGALURU, May 18 (Reuters) - Ramco Cements Ltd
 TRCE.NS  reported a near-23% rise in fourth-quarter profit on
Thursday on a boost in Indian infrastructure spending.
    The Chennai, Tamil Nadu-based cement maker's profit after
taxes rose to 1.52 billion rupees ($18.6 million) in the three
months ended March 31, from 1.24 billion rupees a year earlier,
according to an exchange filing. 
    Analysts, on average, expected a drop in profit to 941.9
million rupees, according to Refinitiv IBES data. 
    Domestic demand for cement was strong on the back of an
uptick in infrastructure project undertakings, offsetting weaker
prices in south India, according to analysts. 
    The company's sale of products rose almost 51% to 25.59
billion rupees, with the volume of cement and dry mortar
products sold rising nearly 46% to 4.7 million tonnes. 
    However, total expenses rose nearly 53% on higher costs for
fuel power and fuel, raw materials, and freight and handling,
among other items. The company said elevated petcoke and coal
prices dented margins. 
    "Transportation cost by rail has increased by 15% due to
re-imposition of busy season surcharge and increase in diesel
price by 3% during FY23 pushed up the inbound and outbound
logistics cost," it said in a statement, adding that it expects
improvement in margins from Q2 in FY24 onwards.
    Its peers Adani-owned Ambuja Cements Ltd  ABUJ.NS  and
Dalmia Bharat Ltd  DALB.NS  also reported a rise in
fourth-quarter profits. 
    Shares of Ramco Cements pared some losses after the results
were declared to settle almost 1% down, trimming YTD gains to
11.6% at close. 

($1 = 81.7800 Indian rupees)
   

 (Reporting by Varun Vyas in Bengaluru; Editing by Sohini
Goswami)
 ((varunvyas.hebbalalu@thomsonreuters.com;))