New Delhi, Aug 7 (IANS) The Ramco Cements Limited on Friday reported a 63 per cent decline in its earnings for the first quarter of FY27, as higher fuel and packing material costs, coupled with lower cement realisations, offset healthy growth in revenue and sales volumes.
The company posted a net profit of Rs 32 crore for the April-June quarter, down 62.8 per cent from Rs 86 crore in the corresponding period last financial year (Q1 FY26), according to its stock exchange filing.
Revenue from operations, however, rose 9.6 per cent year-on-year to Rs 2,269 crore in Q1 FY27 from Rs 2,070 crore a year earlier, supported by strong volume growth.
Operating performance remained under pressure, with earnings before interest, tax, depreciation and amortisation (EBITDA) declining 22.7 per cent to Rs 307 crore from Rs 398 crore in the year-ago quarter. EBITDA margin narrowed to 13.5 per cent from 19.23 per cent in Q1 FY26, reflecting rising input costs and weaker pricing. Blended EBITDA per tonne also fell to Rs 681 from Rs 981 a year ago.
The company attributed the decline in profitability to higher fuel and packing material costs following the West Asia conflict, as well as a 5 per cent year-on-year decline in cement realisations.
Despite the pressure on margins, Ramco Cements recorded healthy operational growth during the quarter. Cement sales volume increased 12 per cent to 4.48 million tonnes from 4 million tonnes in the corresponding quarter last year. The company said it achieved this growth despite temporary demand disruptions caused by state elections in Tamil Nadu, Kerala and West Bengal.
Cement capacity utilisation improved to 70 per cent during the quarter from 68 per cent a year ago. The company’s construction chemicals business also performed well, with sales volume rising 13 per cent to 1.35 lakh tonnes from 1.20 lakh tonnes in Q1 FY26.
The company also highlighted the impact of the Tamil Nadu government’s mineral-bearing land tax on limestone, which became effective from April 2025. The levy of Rs 160 per tonne of limestone increased variable costs by Rs 39 crore during the quarter, translating into an additional cost of Rs 84 per tonne of cement.
–IANS
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