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Ramco Cements Q3 Review - Elevated Cost, High Volume In The East Weigh On Margins: Motilal Oswal

The Ramco Cements Q3 Review - Elevated Cost, High Volume In The East Weigh On Margins: Motilal Oswal

A man sits atop bags of cement on a truck. (Photographer Prashanth Vishwanathan/Bloomberg)
A man sits atop bags of cement on a truck. (Photographer Prashanth Vishwanathan/Bloomberg)

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Motilal Oswal Report

The Ramco Cements Ltd.’s Q3 FY22 results reflect the cost pressures witnessed by the industry and the inability to pass on the cost increases due to demand constraint.

The Ramco Cement’s variable cost rose 36% YoY leading to 22% YoY increase in opex/tonne. This negated the 15% YoY volume growth and operating profit margin contracted 14.7% YoY.

Ebitda decreased 42% YoY, while Ebitda/tonne declined 49% YoY. Accordingly, profit after tax was down 59% YoY.

Higher sales in the East and North East markets also impacted profitability, as the realisation/profits in the Eastern markets are Rs 1,000/tonne lower than the Southern markets.

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Motilal Oswal Ramco Cements Q3FY22 Result Update.pdf

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