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Informist, Thursday, Aug. 7, 2025

By Reshma Ravi     

MUMBAI – The Ramco Cements Ltd. is expected to post a sharp rise in its net profit for the June quarter, driven by improved pricing and a better operating margin resulting from steep price hikes, particularly in the southern and eastern markets. The average revenue earned per tonne of cement sold is expected to improve significantly from the previous quarter, reflecting the impact of these price increases.

The company is expected to report a net profit of INR 980 million for the June quarter, up almost three-fold on year and more than three-fold  on quarter, according to the average of estimates from nine brokerage firms. The highest estimate for the company's net profit is INR 1.31 billion from Nirmal Bang Equities Pvt. Ltd. and the lowest estimate for net profit is INR 698 million from Anand Rathi Share and Stock Brokers Ltd. 

The company is expected to report net sales of INR 22.2 billion, up 6% on year but down 7% sequentially. The highest estimate for net sales is INR 23.6 billion from Anand Rathi and the lowest estimate is INR 20.42 billion from JM Financial Institutional Securities Pvt Ltd. 

The company's volume growth during the reporting quarter is expected to rise marginally on year. This can be attributed to seasonal weakness due to the onset of the monsoon. However, the impact of lower dispatches is expected to be offset partially by improved average revenue per tonne and stable costs, helping the company maintain strong profitability despite limited volume growth.

"We estimate volumes during the quarter at 4.3 million tonnes, down 1% year-on-year and 18% quarter-on-quarter. We estimate blended realizations to increase quarter-on-quarter by 11.1% and 4.8% year-on-year, on account of price hikes in key south and east regions during the quarter," said Kotak Institutional Equities.

"We estimate EBITDA per tonne to recover 36% year-on-year, up approximately 65% quarter-on-quarter, to INR 999," ICICI Securities Ltd. said.

The Ramco Cement Ltd. is expected to post earnings before interest, tax, depreciation, and amortisation of INR 4.26 billion, according to the average of eight estimates. The highest estimate for EBITDA is INR 4.64 billion from Nirmal Bang and the lowest is INR 3.89 billion from JM Financial.

At 1021 IST, shares of the company traded at INR 1,147.10, down marginally, on the National Stock Exchange. The stock is up 14% since the company announced its March quarter earnings. The company will release its June quarter earnings Thursday. Of the 19 brokerage reports on the company available with Informist, nine have a ‘buy' recommendation with an average target price of INR 1,086 and six have a ‘hold' rating with an average target price of INR 980 and four have a ‘sell' recommendation.  

Following are the Apr-Jun earnings estimates for The Ramco Cements based on reports from nine brokerage firms in descending order by the estimate of net profit:

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Edited by Akul Nishant Akhoury

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