Q1FY22 Result Update - Ramco Cements - ICICI Direct

The company reported a sharp drop in sales volumes due to stringent restrictions in the south. However, strong realisations kept margins firm.

- Clocked revenue of Rs. 1,229 crore, down 24.6% QoQ, led by sales volumes de-growth of 33.3% to 2.14 MT. On a YoY basis, revenues were up 17.3%

- EBITDA/t was up 21.5% QoQ to Rs. 1700/t (vs. last quarter EBITDA/t of Rs. 1,399/t). EBITDA margin was at 29.6%, up 209 bps QoQ, 453 bps YoY

- PAT at Rs. 169 crore, up 52.3% YoY, -21.2% QoQ vs. our estimate: Rs. 152 crore)

Key triggers for future price performance

- Incremental volumes from new units (1 MT Odisha GU, 1.5 MT & 2.25 MT clinker unit in Jayanthipuram & Kurnool) would help grow the business from H2FY22 onwards

- Expect sales volume CAGR of 18.5% during FY21-23E

- Debt levels are expected to peak out in FY22E; the company aims to become debt free in three years thereafter

For details, click on the link below: Link to the report

Shares of The Ramco Cements Limited was last trading in BSE at Rs. 1096 as compared to the previous close of Rs. 1067.2. The total number of shares traded during the day was 19729 in over 1893 trades.

The stock hit an intraday high of Rs. 1099.3 and intraday low of 1062.95. The net turnover during the day was Rs. 21362488.

Source : Equity Bulls

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