The Ramco Cements (RAMCOCEM) Q1 24/25 earnings summary

Executive summary

• GDP growth forecast for FY25 raised to 7.2% amid improved demand and infrastructure push.

• Unaudited standalone and consolidated financial results for the quarter ended 30 June 2024 were approved by the Board on 25 July 2024 and reviewed by auditors with an unmodified opinion.

• The business operates as a single segment: cement and cementitious materials.

• Cement sales volume up 1% YoY to 4.36 MnT, but average cement prices dropped 8% YoY.

• Margins and profitability impacted by weak pricing and higher costs, despite cost-saving initiatives.

Financial highlights

• Consolidated revenue for Q1 FY25 was ₹2,093.55 crore, down from ₹2,246.66 crore in Q1 FY24; EBITDA at ₹328 crore, down 6% YoY.

• Consolidated net profit after tax for Q1 FY25 was ₹36.57 crore, down from ₹74.36 crore in Q1 FY24; EBITDA margin at 16%.

• Finance cost up 21% YoY to ₹113 crore; depreciation up 13% YoY to ₹167 crore.

• Cash profit at ₹79 crore, down 70% YoY.

• Basic and diluted EPS (consolidated) for Q1 FY25 was ₹1.63, down from ₹3.26 in Q1 FY24.

Outlook and guidance

• Demand outlook positive in Andhra Pradesh with new government; overall demand affected by elections and monsoon.

• Capex for FY25 estimated at ₹1,200 crore; cement capacity to reach 30 MTPA by Mar-26.

• Building products business revenue expected to cross ₹500 crore p.a. in next 2 years.

• The company is monitoring the impact of pending labor law changes; no financial impact recognized yet.