Why did Ramco Cements share price fall 3% in trade on Friday, May 23?

Business Standard

23-05-2025

Ramco Cements share price: Cement company Ramco Cements shares were under pressure in early trade, with the scrip dropping up to 2.88 per cent to an intraday low of ₹959.65 per share.
Why did Ramco Cements share drop in trade today?
Ramco Cements share price dropped after the company posted a weak set of results in the March quarter of financial year 2025 (Q4FY25).
Ramco Cements' profit plunged over 78 per cent year-on-year (Y-o-Y) to ₹27.4 crore in the March quarter of financial year 2025 (Q4FY25), from ₹129 crore in the same quarter last year (Q4FY24).
Its sales dropped 10.5 per cent Y-o-Y to ₹2,397.3 crore in Q4FY25, from ₹2,678.2 crore in Q4FY24.
For FY25, net profit declined 24.2 per cent to ₹272.65 crore, as opposed to ₹359.9 crore in FY24. Sales tanked 9.1 per cent to ₹8,518.4 crore in FY25, from ₹9,376.3 crore in FY24. ALSO READ |
Ramco Cements dividend
The company has proposed a dividend of ₹2 per equity share of face value of ₹1 each for FY25
Ramco Cements FY26 outlook
On the demand front, industrial activity is set to recover on the back of increased government spending. A normal monsoon could boost farm incomes and spur rural housing demand, while urban housing is likely to gain traction due to a low base, expected interest rate cuts, and faster execution under the Pradhan Mantri Awas Yojana - Urban.
Nevertheless, risks from geopolitical tensions, commodity price volatility, financial market fluctuations, and global trade fragmentation persist. Key opportunities lie in maintaining currency stability, favorable monsoons, and potential repo rate cuts.
In the cement sector, particularly in the southern region, Ramco Cement has observed a notable price increase in the early months of FY26—₹30 to ₹35 per bag in the trade segment and ₹60 to ₹70 per bag in the non-trade segment.
In the eastern region, while trade prices have remained flat, non-trade prices have seen a modest rise of about ₹10 per bag from March-end levels. The company anticipates these prices will hold, driven by accelerated capacity additions and ongoing consolidation in the southern market.
However, a major cost pressure has emerged in Tamil Nadu with the introduction of a new Mineral Bearing Land Tax of ₹160 per tonne of limestone from April 4, 2025—the highest in India. For comparison, Jharkhand levies ₹40 per tonne. This tax is expected to increase production costs by approximately ₹200 per tonne of cement produced in the state. Cement manufacturers, through their industry association, have appealed to the Tamil Nadu government for relief, and the matter is currently under review. ALSO READ |
About Ramco Cements
Ramco Cements, headquartered in Chennai, is among India's leading cement manufacturers with a strong footprint across South and East India.
Established in 1957, the company has built a robust reputation over the decades, offering a comprehensive portfolio that includes cement products, dry mix solutions, and ready-mix concrete.
With a focus on innovation and sustainability, Ramco Cements continues to cater to a diverse range of construction needs across residential, commercial, and infrastructure sectors.
With over 60 years of experience in the Indian cement industry, Ramco Cements has steadily expanded its operations and capacity to become one of the country's top cement producers. Its consistent focus on quality, operational efficiency, and customer-centric solutions has played a pivotal role in its growth and long-standing presence in the market.