Ramco Cements’ Posts Flat Q1 Profit Growth
Ramco Cements Ltd. reported a flat profit growth in the April-June quarter, in line with analyst estimates.
The net profit stood at Rs 155.8 crore during the quarter, according to the company’s exchange filing. The Bloomberg consensus estimate stood at Rs 155 crore. The Chennai-based cement maker’s revenue rose 6.7 percent year-on-year to Rs 1,029 crore, also in line with analyst estimates.
Demonetisation is now behind us. GST, increased spending by the central government on infrastructure and an affordable housing are expected to propel the growth for the cement demand.Ramco Cements’ Exchange Filing
The earnings before interest, tax, depreciation and amortisation declined 2.05 percent to Rs 290.4 crore compared to the year-ago period. Profit margins contracted 180 basis point to 28.2 percent.
Shares of Ramco Cements fell as much as 1.9 percent, the most in a month, after the announcement, and pared some losses to end 1.6 percent higher.