The shares of Ramco Cements Ltd. were down by 7% at ₹849.60 per share against the previous close at ₹896.90 per share, in today’s early trade as the company reported a 59% decline in standalone profit in October-December to ₹83 crore on account of faltering demand.
Sales from products, however, rose 16% to ₹1,541 crore for the quarter under review. The company’s scrip fell to a low of ₹827 against the previous close of ₹896.90 on the BSE.
Higher costs of operations, including fuel cost, took a toll on the company’s bottom line, despite growth in cement sales. Ramco Cements’ profit before tax fell 6%t at ₹113 crore, against ₹298 crore in the year-ago quarter, the company said in an exchange filing.
The company’s net revenue for the December 2021 quarter grew 16% to ₹1,556 crore against ₹1,345 crore reported in the quarter ending December 2020. However, EBIDTA fell 41% at ₹238 crore compared to ₹403 crore in the year-ago quarter due to a sharp increase in fuel price and drop in cement prices, reports quoting the company said.
“The average increase in diesel prices by 22% during the third quarter of the current financial year increased inbound/outbound logistics costs for the company,” reports said.