INVESTOR UPDATE
Awaiting price reaction for this filing.
The Ramco Cements reported weak FY25 results with revenue falling 9% YoY to ₹8,539 Cr and EBITDA dropping 20% to ₹1,276 Cr, driven by a 10% decline in average cement prices. EBITDA per ton fell sharply from ₹867 to ₹690. Despite the weak operating performance, FY25 PAT rose 6% to ₹417 Cr, supported by ₹340 Cr in exceptional gains from sale of investments and surplus lands. 4QFY25 was particularly weak with PAT crashing 74% YoY to ₹31 Cr. Volumes grew marginally by 1% to 18.5 MnT for the full year. The company is targeting 30 MTPA capacity by March 2026 with FY26 capex of ₹1,200 Cr, and has reduced gross debt to ₹4,652 Cr while monetizing ₹460 Cr of non-core assets toward a ₹1,000 Cr target.
Weak pricing and margin pressure remain the key overhang, though debt reduction and asset monetization progress are positives. Falling EBITDA per ton and rising net debt/EBITDA to 3.51x could weigh on sentiment in the near term despite the capacity expansion roadmap.