Ramco Cements had a bit of a rough quarter, with their revenue dropping by 10.5 per cent to ₹2,397 crore in the quarter ending March 2025. The net profit also took a hit, plummeting by a whopping 80 per cent to ₹25.7 crore compared to ₹128.5 crore in the same quarter last year. Things weren’t looking much better on a standalone basis, with Ramco Cements’ profit after tax (PAT) down by 74 per cent year-on-year in Q4FY25 at ₹31 crore. Revenue from operations also saw a decline of 10.5 per cent, coming in at ₹2,392 crore versus ₹2,673 crore in Q4FY24.
Financially speaking, the full year didn’t fare much better for the company either. The consolidated revenue for the year saw a 9 per cent decrease, amounting to ₹8,518 crore. The consolidated PAT also took a hit, falling by 25 per cent year-on-year to ₹270 crore. However, there was a glimmer of hope in the form of a profit of ₹340 crore earned by the company in FY25 from the sale of investments and surplus lands, which was recognized under exceptional items. This injection of funds could potentially help offset some of the losses incurred throughout the year.
In terms of investments, Ramco Cements shelled out a hefty ₹1,024 crore during FY25 towards capex, including maintenance capex. Looking ahead to FY26, the company is estimating a capex of around ₹1,200 crore. Additionally, the company managed to monetize ₹460 crore out of a targeted value of ₹1,000 crore towards the disposal of non-core assets in FY25. The proceeds from these sales will be allocated towards reducing the company’s debt and meeting its capex requirements. As of March 31, the net debt stood at ₹4,481 crore, with the company successfully reducing it by ₹340 crore over the course of FY25. It seems like Ramco Cements is taking steps to streamline their finances and bounce back from the setbacks faced in the past year.
Overall, Ramco Cements faced some challenges in Q4FY25 and throughout the full year, with declining revenue and profits painting a less than rosy picture. However, with strategic moves like the sale of investments and non-core assets, as well as a focus on reducing debt and maintaining capex, the company seems to be on track to weather the storm and emerge stronger in the coming years. It will be interesting to see how these financial decisions play out in the long run and whether they will lead to a more stable and prosperous future for Ramco Cements.
