The Ramco Cements Limited — Important, 06-02-2025: General Updates

**Financial Highlights:** In 3QFY25, Ramco Cements reported a revenue of ₹1,988 crore, reflecting a 6% decline YoY, alongside a cash profit of ₹290 crore. The average cement price fell 14% YoY, adversely impacting margins, which led to a profit after tax of ₹325 crore, a substantial increase compared to ₹93 crore in 3QFY24. For the nine-month period, revenue reached ₹6,134 crore, with a profit after tax of ₹386 crore.

**Strategic Initiatives and Growth Drivers:** The company targets a cement capacity of 30 MTPA by March 2026, with ongoing projects at Kolimigundla and ongoing de-bottlenecking. Capex for FY26 is estimated at ₹1,200 crore. The company successfully monetized ₹443 crore from non-core assets.

**Business Developments:** The commissioning of a 10 MW waste heat recovery plant in Ramasamy Raja Nagar is anticipated in 1QFY26, supporting sustainability goals. New construction chemicals capacities are also set to launch in Odisha before March 2025.

**Market Position and Competitive Advantage:** Despite a 2% decrease in the INR, Ramco remains resilient amid global uncertainties. The company’s focus on operational excellence has been acknowledged, winning multiple awards in quality and CSR practices.

**Investor Implications:** Ramco’s outlook remains cautiously optimistic, driven by strong demand recovery potential and strategic capacity expansions, though investors should monitor the impact of fluctuating cement prices and geopolitical risks closely.