Ramco Cements Limited, on Thursday, posted a consolidated net profit of Rs 152 crore for the March quarter. This is 22.5 per cent rise from Rs 124 crore a year ago, the company statement said.
The company has recommended a dividend of Rs 2 per share of Rs 1 each.
The company’s sale of products rose by 50.7 per cent to Rs 2,559 crore for the March quarter as compared to Rs 1,698 crore in the year-ago period.
In a regulatory filing, Ramco Cements said, “The Board of Directors have recommended a dividend of Rs 2/- per share of Rs 1/- each for the year ended 31 March 2023. The dividend on declaration at the ensuing Annual General Meeting, will be paid within 30 days thereof.”
The meeting of our Board of Directors held today, approved the audited financial results (Standalone and Consolidated) for the quarter and year ended 31 March 2023, the company said.
Domestic demand for cement was strong on the back of an uptick in infrastructure project undertakings, offsetting weaker prices in south India, according to analysts.
However, total expenses rose nearly 53 percent on higher costs for fuel power and fuel, raw materials, and freight and handling, among other items. The company said elevated petcoke and coal prices dented margins.
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"Transportation cost by rail has increased by 15 per cent due to re-imposition of busy season surcharge and increase in diesel price by 3 per cent during FY23 pushed up the inbound and outbound logistics cost," it said in a statement, adding that it expects improvement in margins from Q2 in FY24 onwards.
Its peers Adani-owned Ambuja Cements Ltd and Dalmia Bharat Ltd also reported a rise in fourth-quarter profits.
Shares of Ramco Cements pared some losses after the results were declared to settle almost 1% down, trimming YTD gains to 11.6 per cent at close.
(With inputs from Reuters)