Ramco Cements Falls 4% As Profit Sheds 30% in Q1 and Margins Contract

Published 07-08-2023, 01:59 pm
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TRCE
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By Malvika Gurung

Investing.com -- Shares of cement manufacturer Ramco Cements (NS:TRCE) tanked 4% on Monday to Rs 841 apiece after the company released its earnings for the quarter ended June 30, 2023, reporting a double-digit fall in bottomline for the period.

The cement producer’s net profit declined by 29.7% on a year-on-year (YoY) basis to Rs 78.9 crore in the first quarter of the financial year 2023-24, while tumbling 48.2% on a sequential basis from Rs 152.4 crore in the March quarter.

The company’s revenue from operations witnessed a healthy 26.4% growth on a YoY basis at Rs 2,241.09 crore in the June quarter versus Rs 1,772.49 crore in the same period last year, however, dropping 12.8% on a quarter-on-quarter basis.

Ramco Cements’ total expenses in the quarter under review jumped 31.7% YoY to Rs 2,140.9 crore from Rs 1,625.7 crore in the corresponding quarter of last year.

Its net worth recorded a decent 3.55% uptick in the reporting quarter at Rs 6,872.83 crore compared to Rs 6,636.69 crore in the year-ago period.

The company’s operating margin in Q1 FY24 stood at 16% as opposed to 17% in Q1 FY23, while the net profit margin contracted to 4% from 6% in the year-ago period and from 6% in the March quarter.

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