Ramco Cements, but for the 16.5% (YoY) reduction in total operating costs, led by a 20% drop in transportation & handling costs and a massive 33% decrease in fuel and costs, the company was able to post a consolidated net profit of Rs.240 crore, up 41%.
Total income was down 4% at Rs.1273 crore.
During the quarter, the sale of cement for the company was at 2.21 million tons v/s 2.72 million tons (YoY), down 19%. The sale was impacted mainly because of lockdown imposed, restricted access in containment zones due to COVID19 and unusually heavy rains in Kerala, Karnataka, AP and Telangana during August and September 2020.
Blended EBIDTA per ton for the quarter was Rs.2,035/- v/s Rs.1,118. During the current quarter, the stability in cement prices, improved sale of its flagship products and premium products in trade segment have played out well for overall improvement of realisations.
With commencement of WHRS operations of 9 MW in Jayanthipuram in Sep 2020 and another 9 MW WHRS getting ready for commissioning during Q3 in Jayanthipuram augurs well for further cost reduction in the coming quarters.
The stock price initially reacted positively to the news, opening almost 2% higher at Rs.816 and then going up by 4% to Rs.833 but from there it saw profit booking and is currently just about holding on to the green at Rs.808, up less than 1%.