Latest news with #Rs160
Mint
23-05-2025
- Business
- Mint
A catalyst for Ramco Cements stock is set to play out. But is that enough?
South India-focused The Ramco Cements Ltd had a tough March quarter (Q4FY25). Cement sales volume declined more than expected by around 4% year-on-year to 5.29 million tonnes. The region has seen an increased pace of consolidation lately, and elevated competition for market share gains has kept cement prices under pressure. In fact, according to Nomura Global Markets Research, Ramco is the only major cement producer in its coverage to report a decline in year-on-year volumes in Q4FY25; Ramco's decline was as against 5% year-on-year growth for the industry. 'Blended realization (at ₹4,522 per tonne) came in 4% below our estimate and was flat quarter-on-quarter, as against a 3% improvement quarter-on-quarter for the industry," added the Nomura report. The Ramco management said that at the start of FY26, price hikes of ₹30-35/bag in the trade segment and ₹60-70 per bag in the non-trade segment were implemented in the south. If these sustain, there is a scope of Ramco's realisations to mend. Plus, increased thrust on green energy should help the company manage operating costs better. Here, it is worth noting that the government of Tamil Nadu imposed a new levy – the mineral bearing land tax of Rs160 per tonne of limestone with effect from 4 April 2025. The management expects this to result in additional cost implication of around Rs200 per tonne of cement produced in Tamil Nadu, where Ramco has significant exposure. Cement manufacturers in Tamil Nadu, through industry association, have represented to the government seeking relief, which is under consideration, it added. Also Read: UltraTech Cement set for higher volumes, tighter grip on costs Reducing debt A company-specific monitorable for Ramco is the pace of debt reduction. It is comforting that Ramco is deleveraging by paring non-core assets. Net debt declined sequentially to ₹4,481 crore as of March 2025, aided by proceeds from the disposal of non-core assets. The company has monetized ₹460 crore so far out of its targeted ₹1,000 crore. The management said that it is on track to achieve the target of monetizing non-core assets before July as committed earlier. It expects the key net debt-to-Ebitda ratio to ease to 2.50-2.75x in FY26 from 3.51x in FY25. 'We believe that recent price hikes and ongoing balance sheet deleveraging are key near-term catalysts that could support the stocks' performance," said Motilal Oswal Financial Services Ltd report dated 23 May. However, sustained profitability, disciplined capital allocation, and meaningful market share gains will be critical structural drivers for a more durable re-rating, it added. In this calendar year so far, the Ramco shares have given mere 3% returns. While efforts to reduce debt are encouraging, Ramco's capital expenditure intensity is likely to remain elevated as it adds more capacity. In FY25 Ramco's capex stood at ₹1,024 crore and the management guided for ₹1,200 crore capex for FY26. Ramco is expanding its clinker and grinding capacity by 3.2mtpa and 1.5mtpa respectively at Kolimigundla Line 2 in Andhra Pradesh. Mtpa is million tonnes per annum. It also plans debottlenecking and adding grinding units at existing facilities with minimal capital expenditure. Ramco aims to reach its capacity target of 30 mtpa by March 2026 from 24 mtpa currently. An Antique Stock Broking report dated 23 March points out that Ramco's net debt is likely to remain greater than ₹4,000 crore over FY25–27E even after factoring in the sale of non-core assets worth ₹1,000 crore. 'The Ramco Cements currently trades at around 11.9x FY27 estimated EV/Ebitda and $105 EV/ton. The stock may continue to trade below its historical valuation given lower than historical profitability and higher leverage," added the Antique report. EV is enterprise value. Also Read | Best cement stocks 2025: Demand revival, pricing trends and growth prospects
Business Recorder
07-05-2025
- Business
- Business Recorder
Secure Logistics gets CCP approval to acquire Trax Online
The Competition Commission of Pakistan (CCP) on Wednesday approved the complete acquisition of Trax Online (Pvt.) Ltd. by Secure Logistics Group Ltd. under a Share Purchase Agreement (SPA). According to a press statement, both parties had submitted a pre-merger application in line with the Competition Act, 2010. The CCP's review identified the relevant product market as courier and e-commerce logistics services in Pakistan. CCP said that the deal is a conglomerate merger with no horizontal or vertical overlaps, and concluded that the transaction will not result in dominance or lessen competition in the relevant market. Pakistan's SLGL secures transport services deal with Maersk Secure Logistics Group Ltd. (SLGL) is a publicly listed company offering long-haul and medium-haul logistics, asset tracking, fleet management, and security services. In the quarter ending March 31, 2025, SLGL posted a profit of Rs160 million, translating into an earnings per share of Re0.59. Meanwhile, Trax Online (Pvt.) Ltd. is a private company focused on warehousing and door-to-door delivery for e-commerce clients. 'The acquisition is expected to enhance operational synergies and support the growth of Pakistan's digital logistics ecosystem,' CCP stated.
Express Tribune
08-04-2025
- Express Tribune
ASF foils bid to smuggle Rs20m in local and foreign currency at Karachi airport
Listen to article The Airport Security Force (ASF) on Tuesday foiled an attempt to smuggle over Rs20 million in local and foreign currency at Jinnah International Airport. According to officials, a passenger identified as Irfanul Haq was intercepted while attempting to board a flight to Toronto. ASF personnel flagged his luggage during routine scanning. A manual search uncovered $70,000 in US currency, 2,200 Canadian dollars, and Rs160,000 in Pakistani currency. Authorities noted that the total recovered amount exceeded Rs20 million. Travellers are legally allowed to carry up to $10,000 in foreign currency. The suspect was taken into custody and handed over to Customs along with the recovered money for further investigation and legal action.
Express Tribune
04-04-2025
- Business
- Express Tribune
50 modern bus shelters planned
The Punjab Transport Company (PTC) has announced a plan to renovate and upgrade bus shelters across the city with an estimated cost of Rs160 million. As part of an 'Empower Her' initiative, the company has floated tenders for the refurbishment of 50 bus shelters. According to bidding documents, the PTC has invited proposals from Pakistan Engineering Council-registered companies, with the deadline for bid submissions set for April 18. The renovation work will include civil and metal fabrication, along with the installation of modern amenities such as mobile phone charging ports, concealed fans, Wi-Fi routers, first aid kits, water coolers, CCTV cameras, lighting, display fridges, dustbins and fiberglass benches. Upgraded shelters will also feature backlit signboards. Additionally, selected shelters will include tuck shops equipped with storage facilities and 3D signage. To ensure quality and efficiency, the PTC has established a standardised grading system for procurement, renovation and repair services. Only companies registered for income and sales tax, with an average annual turnover between Rs200 million and Rs301 million over the past three years, are eligible to participate. Prospective contractors must have qualified professionals in civil, electrical and mechanical engineering, architecture, environmental and social safeguards, each with a minimum of five years of experience. Eligible contractors must demonstrate a proven track record, with at least five years of repair and maintenance experience and the successful completion of a similar project worth Rs200 million or more within the last three years for public sector institutions or donor agencies. The company has assigned weightage to each component in the selection process, requiring a minimum of 65 marks for bidders to qualify. The upgraded bus shelters aim to provide protection for passengers from the sun and storms during the summer season and offer a safe waiting area during rainy weather. According to officials, the project aims to ease the travel experience for passengers and urban residents while contributing to reduction of pollution in densely populated areas as the shelters will serve as designated locations where buses stop for passengers to board or alight safely, preventing hazardous boarding or alighting at intersections or areas not using the curb lane. It will also strengthen the connection between public transit and local communities, enhancing accessibility and convenience. According to data compiled by the Punjab Emergency Services Department, at least 1,336 traffic accidents were recorded in Lahore during the Eid holidays. The details were shared during an operational review meeting, where Emergency Services Secretary Dr Rizwan Naseer expressed deep concern over the surge in accidents and fatalities, urging parents, teachers and the civil society to promote road safety measures. He emphasised the importance of adhering to speed limits, particularly for motorbikes, saying it should not exceed 50km/h. "Every additional kilometre per hour increases the risk of a fatal accident by four to six per cent," he warned. The data showed that 86 people had lost their lives in road traffic accidents across Punjab during the holidays. Rescue teams responded to 29,132 emergencies across the province, including 8,887 traffic accidents, 16,831 medical emergencies, 641 crime-related incidents and 501 fire outbreaks. Lahore with a total of 2,972 emergencies was the district with the highest number of emergencies, followed by Faisalabad with 1,847, Multan 1,539, Bahawalpur 1,280 and Gujranwala 1,236. During the video link meeting, divisional emergency officers reported an alarming increase in road traffic crashes during the Eid holidays in their divisions as compared to the routine ratio.
Express Tribune
25-03-2025
- Business
- Express Tribune
Govt measures help curb smuggling
Listen to article Pakistan has taken a host of strict measures to control smuggling of commodities including oil supplies from Iran that led to an increase of up to 340% in legal trade. Though the government has sprung into action to curb the smuggling of Iranian oil, the domestic oil industry claims the illegal trade has started rising again, sparking concerns among market players. In a recent meeting of the federal cabinet, the interior and narcotics secretary spoke about the anti-smuggling measures and operations undertaken over the last one year. He informed ministers and advisers that the government had cracked down hard on the inward and outward smuggling of commodities, including the essential items, such as wheat, sugar, urea, cigarettes, oil, gold, tyres and tea. Action had been taken through setting up 56 joint check posts, the digitisation of petrol pumps, introducing tracking systems for vehicles carrying Iranian oil and the completion of a sea barrier at Jiwani. The government has also formed a seafront task force under the Pakistan Maritime Security Agency and is establishing 35 digital enforcement stations. The secretary revealed that the overall increase in legal imports across all categories reached 340.8%, which indicated a significant rise in documented trade. Separately, in a letter written to Director Customs Intelligence of the Federal Board of Revenue (FBR) Abdul Basit Abbasi, the Oil Companies Advisory Council (OCAC) drew his attention to the rise in smuggling of Iranian oil. The industry lobby pointed out that they were encountering a decline in sales of petroleum products as well as the loss of revenue in the backdrop of resurgence of illegal trade. "We refer to our letter dated November 4, 2024, in which we acknowledged the efforts undertaken by the FBR to curb illicit trade, particularly concerning the illegal petrol pumps, unlicensed oil agencies and cross-border smuggling," the OCAC said, adding that those measures significantly contributed to restricting the illegal fuel trade, leading to a notable increase in nationwide fuel sales from September to December 2024 (compared to the same period of last year) and substantial revenue generation for the government. However, it expressed concern over the recent downturn in fuel sales in February 2025. Reliable sources indicate that the illicit trade has resurfaced as the smuggled high-speed diesel is being sold at an alarmingly low price of approximately Rs180 per litre compared to the current market price of Rs258.64 per litre. Additionally, the mixing of light aliphatic hydrocarbon and solvent with petrol goes on unchecked, with reports suggesting that adulterated motor spirit is being sold for Rs160 per litre, significantly lower than the regulated price of Rs255.63 per litre. This resurgence of illegal fuel sales not only disrupt legitimate businesses but also result in a substantial revenue loss of roughly Rs1.5 billion per day for the government. The OCAC pointed out that the adverse impact was reflected in the declining fuel sales, which included a 6% fall in high-speed diesel sales to 419,494 metric tons in February 2025 as compared to sales of 445,263 MT in February 2024. Similarly, preliminary data indicates that motor spirit sales will be 5% lower in March 2025 compared to the same month of last year. Additionally, planned sales, based on September-December 2024 trends, are down 13% for motor spirit and 16% for high-speed diesel in March 2025, despite the onset of agricultural planting season. "Given these developments, we request you to mitigate the resurgence of illicit fuel trade through the closure of illegal retail sites, with strict measures to prevent their re-emergence and stronger border controls, which can contribute 4,000-8,000 MT of fuel daily to the economy," the OCAC said. It also underscored the need for placing restrictions on the import of white spirit, which was commonly used as an adulterant in high-speed diesel.
