Ramco Cements’ net profit falls 20% on poor realisation in Q2 2018
The Ramco Cements has reported a 19.8% year-on-year (y-o-y) fall in net profit to around Rs 125 crore in the second quarter (Q2) of 2018-19 due to the drop in realisation. “Though there has been volume growth of 22% during the current quarter compared to previous corresponding period, the realisation has impacted adversely due to pressure on prices,” the company said. The increase in transportation costs due to diesel price hike has pushed up the lead distance, it said. Diesel prices rose 20% y-o-y on an average during Q2, which had had resulted in an increase in transportation costs for both raw materials and finished goods, the company stated. “During the current quarter, the cost of pet coke and coal had also steeply increased,” it said.
Net revenues surged 18.4% y-o-y to Rs 1,224.8 crore during the quarter. The sale of cement for the company stood at 26.14 lakh tonnes in Q2 compared to 21.5 lakh tonnes during the same timeframe the previous year.