Latest news with #SouthIndia-focused
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
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Business Standard
14-05-2025
- Business
- Business Standard
Realty firm Brigade Group acquires 5.4 acres in Chennai for ₹441.7 crore
Bengaluru-based real estate developer Brigade Enterprises has acquired 5.41 acres in Velachery, Chennai, for ₹441.7 crore, making the Tamil Nadu capital the company's second-largest base. The land has a gross development value (GDV) of ₹1,600 crore and a project development potential of 0.8 million square feet. Pavitra Shankar, managing director, Brigade Enterprises Limited, said: 'Chennai has grown into our second-largest market after consistent and strategic investment in business development. This acquisition reinforces our commitment to expanding our footprint in the city with a focus on marquee land parcels in excellent locations.' 'Our aim is to address the strong demand for thoughtfully designed, high-quality residential spaces that resonate with the aspirations of modern consumers. Velachery's prime location and connectivity make it an ideal choice for creating a vibrant community, aligning with our vision of delivering exceptional living experiences,' she added. Strategically positioned, the project will offer seamless connectivity to both the IT corridor of OMR and the Central Business District (CBD). Reshmi Panicker, executive director, land and residential services, Knight Frank India, commented: 'Chennai has emerged as a strategic hotspot for leading South India-focused developers. This transaction highlights the increasing appetite for premium locations backed by strong infrastructure and long-term residential demand. The city is firmly on the radar for serious institutional capital and branded players, making a strong case for sustained residential investment.' Other key developments by Brigade in the city include Brigade World Trade Centre and Tech Boulevard, the 6.5-acre Brigade Altius in Sholinganallur, the 33-acre township Brigade Xanadu in Mogappair, and the mixed-use project Brigade Icon on Mount Road.
Hindustan Times
14-05-2025
- Business
- Hindustan Times
Brigade Group acquires 5.4-acre land parcel in Chennai for ₹441 crore to develop a housing project
Bengaluru-based listed real estate developer Brigade Group has acquired a 5.41-acre land parcel in Chennai's Velachery Road for ₹441 crore to develop a housing project, the company said in a regulatory filing on May 14. The residential project will have a gross development value (GDV) of approximately ₹1,600 Crore, with a development potential of about 0.8 million square feet. The deal was facilitated by real estate consultant Knight Frank India. Strategically positioned, the project will offer connectivity to both the IT Corridor of OMR and the Central Business District (CBD), Knight Frank said. "Chennai has grown into our second-largest market after consistent and strategic investment in business development. This acquisition reinforces our commitment to expanding our footprint in the city with a focus on marquee land parcels in excellent locations," Pavitra Shankar, managing director, Brigade Enterprises Limited, said. Chennai has emerged as a strategic hotspot for leading South India-focused developers, Reshmi Panicker, executive director, Land and Residential Services, Knight Frank India, said. "This transaction highlights the increasing appetite for premium locations backed by strong infrastructure and long-term residential demand. The city is firmly on the radar for serious institutional capital and branded players, making a strong case for sustained residential investment.' Also Read: Brigade Group to jointly develop 1 million square feet residential project in Chennai Brigade said that it plans to launch close to 15 mn sq ft of residential, office, retail and hospitality space in Chennai, for which it will invest close to over ₹8,000 crore. "Our focus is on the three big South Indian markets of Bengaluru, Chennai and Hyderabad. Chennai is set to become our second-largest market after Bengaluru, and we aim to double our growth in the city across residential, commercial, retail and hospitality," Shankar had said earlier. In March, the Group announced the launch of a high-end residential project in Sholinganallur, Chennai, with an estimated revenue potential of ₹1,700 crore. Spread across 6.5 acres, the development covers 1.4 million square feet and includes three landmark towers, each rising 43 storeys high. Brigade Group said that the project will reach a height of approximately 143 meters, offering residents panoramic views of the city and its surrounding landscapes. It said the towers are connected by a sky bridge, and the project features 50,000 sq ft of amenities. In November last year, Brigade Group said it had signed a joint development agreement to build apartments spanning one million square feet, with a gross development value of ₹800 crore in Chennai. The residential project is located in West Chennai, and will be developed as part of a 1.5 million square feet mixed-use development, the company added.
Time of India
14-05-2025
- Business
- Time of India
Brigade Enterprises acquires 5.41-Acre Parcel in Chennai's Velachery for ₹441.70 crore
Brigade Enterprises , a real estate development firm has acquired a 5.41-acre land parcel on Velachery Road , Chennai, through an outright purchase valued at ₹441.70 crore. Located adjacent to Phoenix Marketcity, the acquisition is a key component of Brigade's strategic growth plan for the Chennai market. The upcoming project, with a gross development value (GDV) of approximately ₹1,600 crore, will offer a development potential of nearly 0.8 million square feet. 'Chennai has emerged as our second-largest market, driven by sustained and strategic investments in business development. This acquisition is a reaffirmation of our commitment to the city and our focus on acquiring marquee land parcels in prime locations. With Velachery's excellent connectivity and vibrant neighbourhood, we see immense potential in creating a premium residential community that aligns with the aspirations of modern urban dwellers,' said Pavitra Shankar, Managing Director, Brigade Enterprises Limited. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If You Eat Ginger Everyday for 1 Month This is What Happens Tips and Tricks Undo 'Chennai has emerged as a strategic hotspot for leading South India-focused developers. This transaction highlights the increasing appetite for premium locations backed by strong infrastructure and long-term residential demand. The city is firmly on the radar for serious institutional capital and branded players, making a strong case for sustained residential investment,' said Gaurav Lal, Executive Director - Strategic Initiatives, Knight Frank India , the advisor to the deal. Earlier this year, Ananthay Properties , a subsidiary of Brigade Group, has signed a definitive agreement to acquire 20 acres land parcel located on Whitefield-Hoskote Road, Bengaluru for a total of Rs 630 crore. Live Events Brigade Group has made significant strides in Chennai with a series of developments across multiple sectors. These include the Brigade World Trade Center and Tech Boulevard, a commercial development; Brigade Altius, a newly launched residential project spread over 6.5 acres in Sholinganallur; and Brigade Xanadu, a 33-acre integrated township recently completed in Mogappair. Additionally, Brigade Icon on Mount Road—a prominent mixed-use development acquired from TVS in early 2022—further underscores the Group's commitment to delivering high-quality spaces. Established in 1986, Brigade Group has nearly four decades of experience. The company has delivered landmark projects across Bengaluru, Chennai, Hyderabad, Mysuru, Kochi, Thiruvananthapuram, and GIFT City, with a diversified portfolio spanning residential, commercial, retail, hospitality, and education sectors.
