Ramco Cements Q3 PAT down -63.4% at Rs75.62cr on sharp spike in power, fuel and transport costs

26 Jan 2022 , 07:01 PM

Ramco Cements Ltd reported 15.52% growth yoy in total revenues for the Dec-21 quarter on consolidated basis at Rs1,552.50cr. On a sequential basis, the revenues were higher for the quarter by 3.29%.

During the quarter, the company still has an outstanding penalty imposed of Rs.259cr by the Competition Commission of India, although the company if confident of coming out clean.

Due to lower profits in the quarter, the debt service coverage and the interest coverage ratios for the quarter fell sharply adding to the solvency risk.

The consolidated Profit after tax (PAT) for the Dec-21 quarter was down -63.42% at Rs75.62cr on higher revenues offset by raw material, power, fuel and transport costs.

In fact, the power and fuel costs more than doubled on a yoy basis due to the power and coal shortage. The sequential fall in profits was due to an exceptional deferred tax credit in the Sep-21 quarter.

Net margins tapered from 15.38% in the Dec-20 quarter to 4.87% in the Dec-21 quarter. Net margins were also sharply lower sequentially due to deferred credits.

Financial highlights for Dec-21 compared yoy and sequentially

	Ramco Cements
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 1,552.50	₹ 1,343.89	15.52%	₹ 1,503.11	3.29%
Net Profit (Rs cr)	₹ 75.62	₹ 206.71	-63.42%	₹ 515.84	-85.34%
Diluted EPS (Rs)	₹ 3.00	₹ 9.00		₹ 23.00
Net Margins	4.87%	15.38%		34.32%