ICICI Direct: Ramco Cements’ Higher Realisations Ease Strain On Q1 Earnings

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.The Ramco Cements Ltd.’s Q1 FY21 numbers broadly remained above our estimates with better net profitability.The company reported a 24.6% YoY drop in revenues to Rs 1,048 crore (versus our estimate of Rs 934 crore).This was mainly led by 28.3% fall in sales volume during the quarter to 1.94 metric tonne (versus our estimate 1.8 metric tonne) as the company’s operation were impacted from mid-March due to imposition of lockdown.On the other hand, realisations remained better, increasing 5% YoY to Rs 5,408/tonne (our estimate 5043/tonne). Total costs per tonne increased 6.6% YoY to Rs 4051/tonne.This was led by higher raw material cost and employee expenses that were up 45%, 54.5%, YoY, respectively, on a per tonne basis due to lower sales volume absorption.On the other hand, power and fuel cost declined sharply by 20.8% YoY due to fall in pet coke prices. With better realisations, Ebitda margins were at 25.1% versus our estimated Ebitda margin of 18.5% for the quarter.Ebitda/tonne came in at Rs 1357/tonne (up 1.3% YoY, 41.9% QoQ) versus our estimated Ebitda/tonne of Rs 957/tonne.Net profit was at Rs 110.9 crore (down 42.6% YoY, 23.9% QoQ) versus our estimated net profit of Rs 59.1 crore for the quarter..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Direct: Ramco Cements’ Higher Realisations Ease Strain On Q1 Earnings

Ramco Cements’ Q1 FY21 numbers broadly remained above ICICI Direct’s estimates with better net profitability.

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