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Economy & Business

Ramco Cements will invest 731 crore on capital in H2FY23, post 11 crore PAT

The Hawk
November9/ 2022

Chennai (The Hawk): Cement principal At a cost of Rs 130 crore, Ramco Cements Ltd. would install a second line at its grinding facility in Odisha.

The proposed line, according to the business, will have a capacity of 0.90 million tonnes per annum (mtpa), and after commissioning, the Haridaspur unit's total capacity will be 1.80 mtpa.

The company said that cement manufacturing has started in September at its Kolimigundla plant in Andhra Pradesh.

With a clinker capacity of 14 mtpa, its cement production capacity has increased to 21 mtpa.

According to the firm, the two units in Tamil Nadu that make up the expansion of the dry motor factory are ready for commissioning, and the two units in Andhra Pradesh and Odisha will be commissioned during FY24.

The company spent Rs. 986 crore on capex in the first half of the current fiscal year and has plans to spend Rs. 731 crore more in the second half and Rs. 892 crore more in FY24.

The waste heat recovery system (WHRS) in Kolimigundla, Andhra Pradesh, will be put into operation for 6 MW this month, and the remaining 6 MW will go into operation in March 2023. According to the firm, the 18 MW thermal power plant and railroad siding will be operational in 2023–2024.

With revenues of Rs 1,793.20 crore (PY Q2: Rs 1,501.03 crore) and a net profit of Rs 11.47 crore, the company ended the second quarter (Rs 517.08 crore).

The company sold 33.11 lakh tonnes of cement during the reviewed period, and capacity utilisation was 66%.

Low prices, high input and financing expenses, and lesser realisation were the causes, according to the company.

According to the business, the ongoing consolidation in the cement industry and the quick addition of new capacity may raise players' desire for market share and put pressure on margins in the near future, particularly given the uncertainty surrounding fuel costs.

(Inputs from Agencies)