Stock Market update: Ramco Cements shares dips by 7% post Q3 results

Stocks of Ramco Cements shares were down by 7% to ₹849.30 per equity share against the previous close at ₹896.90 per share, in today’s early trade.

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.

Subscribe to our newsletter
Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time