RESULTS FOR THE YEAR ENDED 31-3-2025
Awaiting price reaction for this filing.
The Ramco Cements reported standalone revenue from operations of Rs. 8,495.10 Cr for FY25, down ~9% from Rs. 9,349.83 Cr in FY24, reflecting weak cement demand and pricing pressure. Profit before exceptional items and tax dropped sharply to Rs. 125.91 Cr from Rs. 543.47 Cr, showing significant core margin compression. However, exceptional gains of Rs. 339.83 Cr from sale of investments and surplus lands boosted pre-tax profit to Rs. 465.74 Cr, helping standalone net profit rise modestly to Rs. 417.39 Cr (vs Rs. 394.98 Cr). On a consolidated basis, profit fell to Rs. 269.57 Cr from Rs. 356.49 Cr. The board recommended a dividend of Rs. 2 per share (Re. 1 face value). Notably, the Tamil Nadu government has imposed a new mineral bearing land tax of Rs. 160/tonne from April 2025, which could add Rs. 200/tonne to cement production costs — a major headwind. The long-pending CCI cartelisation penalty of Rs. 258.63 Cr remains pending at the Supreme Court with no provision made.
Negative near-term: revenue decline, sharp core earnings drop, and the new TN mineral tax threaten margins from FY26 onward. Positive offsets: strong exceptional gains, debt-equity ratio improved to 0.62 (from 0.69), dividend maintained, and auditors gave an unmodified opinion. Investors should watch for margin recovery and resolution of the TN tax issue.