InvestorQ : Why did Ramco Cements report a fall in net profits for the Mar-20 quarter?
Lavanya Subramanian made post

Why did Ramco Cements report a fall in net profits for the Mar-20 quarter?

Answer
user profile image
ishika Banerjee answered.
3 months ago


South based Ramco Cements reported 13.17% fall in net profits at Rs.142.90 crore for the Mar-20 quarter. This fall in profits was largely driven by a sharp fall in output in the month of March due to the Coronavirus affliction. Although the lockdown only started in the last week of March, the impact on labour and supply chain had begun well before that.

That stress was also visible in the total sales revenues of Ramco Cements as it fell by 9.17% to Rs.1404 crore. The company had to shut down operations at several plants and even the demand for cement got constrained as construction activity and other infrastructure activities came to a virtual standstill during the period.

Cement volumes during the Mar-20 quarter were also down more than 10% on the back of tepid demand. The cement volumes fell to 29.32 lakh tonnes as against 32.94 lakh tonnes in the corresponding quarter last year. For the full year, Ramco net profits were up 18.4% at Rs.605.7 crore while revenues were up by 4.5% at Rs.5423 crore.