Latest news with #RamcoCements
The Hindu
3 days ago
- General
- The Hindu
Over 1 lakh saplings planted across Virudhunagar
Massive sapling planting events were taken up across Virudhunagar district on Thursday on the occasion of World Environment Day. Virudhunagar Collector V. P. Jeyaseelan inaugurated sapling planting drive at the Eco-Park set up by Ramco Cements at Pandalgudi. Speaking on the occasion, the Collector said that a total of 1,12,350 saplings were planted in 360 places in the 11 blcoks in the district. The theme of the World Enviroment day this year was on ending plastic pollution. 'The present developmental activities were posing a major challenge to biodiversity. Climate change, health issues, food and water security and sustainable resources could be retrieved only based on nature-based solutions,' he added. Virudhunagar district had only 16.8% of green coverage and efforts are being taken to increase it to 33% by planting 1 crore saplings under Green Tamil Nadu Mission. A consultation on the need to preserve biodiversity at all levels was held on the occasion. District Revenue Officer R. Rajendran, Special DRO (Land Acquisition for SIPCOT), Sengottaiyan, Project Director (District Rural Development Agency), Dhandapani, Sub-Collector, Sivakasi, N. Priya Ravichandran, governing council member of Tamil Nadu Climate Change Mission, Nirmala Raja, were among those who were present.
Indian Express
4 days ago
- Business
- Indian Express
Ramco Cements: A cyclical turnaround in the making?
Cement prices have remained flat for a decade, with South India bearing the brunt. However, with consolidation among major players and early signs of price recovery, Ramco Cements, which is trading near its 2017 peaks, could be poised for a turnaround. Owing to excess capacity, per bag prices of cement have increased by only 1.7% CAGR over the last 10 years, well below the average inflation rate over the period. Nowhere has this impact been felt more than in South India, where excess capacity has been the highest among regions. But the silver lining is that prices are expected to inch up owing to the consolidation drive by Ultratech Cement and Ambuja Cement. If there is recovery in pricing, one major player in the southern region – The Ramco Cements – could be a major beneficiary. While the stock is barely above the peak price it hit in 2017 of Rs 866 per share, there are enough reasons to dig deeper into the company. A climb and then a dip in sales and volumes From FY21 to FY24, Ramco Cements more than doubled cement volumes — from 8.3 million metric tonnes (MMT) to 18.0 MMT — driving revenue from Rs 5,303 crore to Rs 9,483 crore. However, despite surging volumes, EBITDA margins slid from ~29.8 percent in FY21 to ~15 percent in FY22 as global coal, petcoke, and diesel prices rose faster than selling prices in South India. By FY23, improving energy costs helped margins recover to around ~15 percent, and revenue climbed to Rs 8,172 crore. In FY24, volumes hit 18 MMT and revenue reached Rs 9,483 crore, with EBITDA margins at ~16 percent. Yet, in FY25, volumes plateaued near 18.2 MMT and revenue dipped 9 percent to Rs 8,554 crore, as renewed input inflation outpaced modest price hikes. Ramco's aggressive capacity additions fuelled top-line growth, but fluctuating energy costs and competitive pricing kept margins under pressure throughout FY21-25. At 14%, Ramco Cements' EBITDA margins are where they were nearly 10 years ago in 2014. With expected improvement in pricing discipline, margins should inch up from here. Profits and cash flow: Volatile but resilient While sales has been in an uptrend, owing to declining EBITDA margins (29-14%) and surging interest payments (Rs 88 crore-459 crore), profit after tax (PAT) has shrunk significantly from Rs 784 crore to Rs 270 crore (after exceptional items – other income of Rs 199 crore). But cash flows tell a different story. Cash flow from operations (CFO) remains strong. Though much of the CFO is used for debt servicing and capex, it reflects operational health. Hence, EV/EBITDA, not P/E, is a more appropriate valuation metric. Debt and interest coverage: A tight corner In a bid to maintain market share, Ramco has grown capacities aggressively, which it funded through debt. When margins were healthy, interest was a small blip (FY21, FY22). But as profitability dropped, interest coverage (EBITDA ÷ interest expense) tumbled from 14x in FY2021-22 to 3x in FY2024-25. Put simply, that means Ramco now has to spend a much larger share of its profit on interest. Management has sold non-core land assets (about Rs 455 crore realised so far, with another Rs 545 crore expected soon) to reduce debt and ease pressure. But until EBITDA climbs back up, investors must be watchful of the coverage ratio. Ramco financed its expansion with debt. As margins shrank, interest coverage dropped from 14x in FY22 to 3x in FY25 — a clear sign of stress. Understanding Ramco's business and the cement cycle How Ramco makes money: The basics Ramco sells bagged cement (OPC, blended cements) to builders, contractors, and cement distributors. It also sells ready-mix concrete and dry mortar (a small part of revenue). Its core markets are Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Odisha, and West Bengal. Ramco's advantage historically comes from: Scale & Integration: 11 plants, 22 MTPA capacity, captive limestone mines — this helps control costs. Green Power: Over 200 MW of wind farms + 43 MW waste-heat recovery — lower electricity costs. Distribution Network: 9,400+ dealers, 23,500+ sub-dealers — gets cement to tens of thousands of customers in villages, towns, and cities. Industry consolidation and competition After a slowdown in 2018-19, the Indian cement industry has seen consolidation. Giants like UltraTech and Ambuja have snapped up smaller players, especially in South India. In FY24 and FY25, Ramco had to keep plants running at high capacity to spread fixed costs, even when demand was weak. Meanwhile, pricing was lacklustre, i.e., supply outpaced demand. From FY21 through early FY2024, South Indian cement prices languished near multi-year lows. Ramco's response has been to expand in other regions, cut costs, and bank on its brand. They boosted green power use from 22% of total energy in FY22-23 to a planned 34% in FY2023-24. They built rail sidings to ditch diesel trucks. They also sold off non-core real estate to pay down debt. Demand outlook: Signs of a turnaround After years of weak pricing, South Indian cement prices finally began to stabilise in early FY25-26. Drivers included a combination of modest demand recovery (government infrastructure projects, rural housing) and relatively slower capacity additions in that region. South India cement prices had seen an uptick in April 2024, compared to April 2023, however, the price hikes did not sustain through the rest of the year. According to Nuvama Research, 'In May 2025, cement prices saw an increase across all regions, with the southern region leading the trend, followed by the eastern, central, and western markets. This price hike was mainly driven by an improvement in demand.' Given that the South Indian cement market is significantly consolidated compared to a year ago, the expectation is that these hikes will sustain themselves. And because South accounts for ~75% of Ramco's volumes, that would directly lift revenue and profitability. That's why, despite a grim FY25, FY26 could be much better. With most expansion behind them (no massive capex outlays planned beyond maintenance), Ramco can use existing capacity to serve recovering demand, so each incremental tonne sold adds right to the bottom line. A significant cost pressure has emerged with the introduction of a new Mineral Bearing Land Tax of Rs 160 per tonne of limestone in Tamil Nadu, effective from April 4, 2025. This rate is reported as the highest in India (e.g., Jharkhand levies Rs 40 per tonne). This tax is expected to increase the cost of cement production in the state by approximately Rs 200 per tonne. Given Ramco Cements' strong footprint in South India, this tax poses a direct and substantial threat to production costs and profitability. The cement industry has appealed to the Tamil Nadu government for relief. The outcome of this request will be critical — an unfavorable decision could result in a structural cost hike for Ramco. Valuation: Is Ramco a good buy now? At Rs 988 per share, Ramco's trailing P/E is roughly 85x earnings. That may sound high, but cement stocks often trade at high P/Es because profits are low. For comparison: UltraTech Cement: 54 P/E Ambuja Cements: 33 P/E Shree Cement: 94X P/E Ramco: 85X P/E Ramco's P/E at 85X reflects a cyclical trough in earnings (not a premium growth multiple). Thus P/E is usually not a great valuation metric for 'cyclical stocks'. P/B comparison: Cheaper on book value P/B is a better metric for comparing valuations for cement companies. Let's take a look : UltraTech and Shree trade at 4.5x and above Ambuja Cement trades at 2.5x book value Ramco trades at ~3.1× book value That tells us that Ramco's assets (plants, land, mines) are valued more cheaply relative to some of the larger peers. Based on its 10-year historical media value of 3.5x, Ramco trades at a reasonable discount. The bottom line: Betting on a cycle turn Ramco is a cyclical bet. You're wagering that the Indian cement cycle is on the upswing—volumes rising, prices firming, costs stabilizing. If that plays out, the stock today is a 'value' (relative to peers) at mid-teens EV/EBITDA and 2.7x P/B. But if your horizon is a few quarters, wait for clearer signals of demand and pricing. If you can hold for more than 12-18 months, Ramco's cyclical upswing could lead to far better performance by the company. Note: We have relied on data from and throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information. Rahul Rao has helped conduct financial literacy programmes for over 1,50,000 investors. He has also worked at an AIF, focusing on small and mid-cap opportunities. Disclosure: The writer or his dependents do not hold shares in the securities/stocks/bonds discussed in the article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
Time of India
23-05-2025
- Business
- Time of India
Gravita India promoter pares 3.4% stake for Rs 498 crore
A promoter of Gravita India on Friday divested a 3.4 per cent stake in the company for Rs 498 crore through an open market transaction. According to the bulk deal data available on the NSE, Rajat Agarwal offloaded 25 lakh shares, representing a 3.38 per cent stake in Gravita India. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads A promoter of Gravita India on Friday divested a 3.4 per cent stake in the company for Rs 498 crore through an open market transaction . According to the bulk deal data available on the NSE, Rajat Agarwal offloaded 25 lakh shares , representing a 3.38 per cent stake in Gravita shares were sold at an average price of Rs 1,991.52 apiece, taking the transaction value to Rs 497.88 the latest transaction, Rajat Agarwal's holding in Gravita India slipped to 32.39 per cent from 35.77 per Motilal Oswal Asset Management Co picked up 7.33 lakh shares at an average price of Rs 1,991 per piece. This took the deal value to Rs 145.98 of the other buyers of Gravita India's shares could not be identified on the National Stock Exchange (NSE).On Friday, shares of Gravita India depreciated 4.55 per cent to close at Rs 1,954 apiece on the May 2023, Gravita India promoter Rajat Agarwal sold a 4.6 per cent stake in the company for Rs 181 a separate bulk deal on the NSE, Nippon India Mutual Fund purchased 19.5 lakh shares or 0.82 per cent stake in the Ramco Cements for Rs 195.98 shares were picked up at an average price of Rs 1,005.03 apiece on the of the sellers of the Ramco Cement's shares could not be ascertained on the scrip of the Ramco Cements rose 1.50 per cent to close at Rs 1,002.65 apiece on the NSE.
&w=3840&q=100)
Business Standard
23-05-2025
- Business
- Business Standard
Why did Ramco Cements share price fall 3% in trade on Friday, May 23?
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.
Business Upturn
23-05-2025
- Business
- Business Upturn
Ramco Cements shares drop over 2% as Q4 net profit falls 75% YoY to Rs 31 crore
By Aman Shukla Published on May 23, 2025, 09:25 IST Shares of Ramco Cements slipped over 2% in morning trade on Friday following disappointing Q4 results for the financial year ended March 31, 2025. As of 9:22 AM, the shares were trading 2.02% lower at Rs 967.85. The company reported a steep 74.5% year-on-year (YoY) decline in net profit to ₹31 crore, compared to ₹121.4 crore in the same quarter last year. Revenue from operations fell 10.5% YoY to ₹2,392 crore, down from ₹2,673 crore in the corresponding period of FY24. The decline in topline performance reflects challenges in demand and pricing pressure across key markets. Operating performance also took a hit, with EBITDA dropping 23% YoY to ₹320.8 crore from ₹417 crore. The EBITDA margin also narrowed, indicating higher input costs and weaker realizations. Ramco Cements opened at ₹968.00 today, reaching a high of ₹985.55 and a low of ₹958.55. The stock shows strong momentum, nearing its 52-week high of ₹1,060.00, well above the 52-week low of ₹700.00. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
