Ramco Cements witnessed a sharp decline in its share price, tumbling more than 8% during Friday’s session, following the release of its profit figures for the quarter ending December (Q3 FY23). The company’s performance fell short of street expectations, primarily attributed to weaker demand and pricing, notably in its key market in south India.
As of 11:27 am, the company’s shares were trading 7.61% lower at ₹900.25.
In an exchange filing, Ramco Cements highlighted the impact of adverse weather conditions, particularly in Tamil Nadu and Andhra Pradesh, where high rainfall and subsequent flooding, caused by typhoon “Michaung,” disrupted demand for cement during the quarter. Additionally, the company noted that cement prices faced downward pressure during the review period.
Despite challenges, the company reported a slight decrease in logistical costs, attributed to a reduction in lead distance.
The disappointing performance in Q3 FY23 reflects the prevailing challenges in the cement industry, particularly in the southern region, emphasizing the need for resilient strategies to navigate through market uncertainties.
