Ramco Cements Q4 Review - Disappoints On Volume Growth: Prabhudas Lilladher
Small rock, pumas, and sand, different types of block material, sit in a pile before being mixed into cement during production. (Photographer: Meg Roussos/Bloomberg)

Ramco Cements Q4 Review - Disappoints On Volume Growth: Prabhudas Lilladher

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Prabhudas Lilladher Report

The Ramco Cements Ltd. reported Ebitda below our estimates by 12% due to lower than expected volumes.

We remain negative on Southern region due to overcapacity and volatile demand pattern.

As demand outlook improves for the region, volume growth would come at the cost of weaker margins due to rise in competition for market share and low capacity utilisation.

The same has played out in FY18- FY20, FY13-FY15 and FY09-FY11.

Secondly, the company’s earnings profile would deteriorate with increasing exposure to low margin and volatile markets of Andhra Pradesh/Telangana and East regions.

Click on the attachment to read the full report:

Prabhudas Lilladher The Ramco Cements Q4FY21 Result Update.pdf

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