Ramco Cements Q2 Net up 46% at Rs 207.01 cr

Ramco Cements today reported a 46per cent growth in its standalone net profit at Rs 207.01 crore for quarter ended September 30, aided by better offtake and cost reduction measures. The firm had a net profit of Rs 142.18 crore in the year-ago period, it said in a BSE filing. Total standalone income of the company rose by 18 per cent to Rs 1,172.24 crore in July-September quarter this fiscal from Rs 1,029.28 crore during the same quarter in 2015-16.

Total expenses of the company were higher at Rs 882.28 crore from Rs 801.86 crore during the period under review. There has been an improvement in the off-take of cement during the quarter compared to the year-ago period, it said. The company's sales rose to 20.34 lakh tonnes (LT) in the September quarter this fiscal from 17.11 LT during the same period in 2015-16. The company added that it continued to focus on cost reduction measures and reduced operating costs significantly and is confident of sustaining it in the coming quarters also.

Ramco Cements reduced its borrowings by around Rs 350 crore during the current half year out of internal accruals. The company has sustained its efforts towards debt reduction since last year which has resulted in lower cost thereby improved its profitability, it added. The company has built up stock of fuel with a view to protect it from further spiralling effect on pet coke prices.