The Ramco Cements Q2 Results Review - Outlook Remains Favorable; Maintain 'Buy': Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.The Ramco Cements Ltd.’s Q2 FY25 performance beat estimates as revenue/Ebitda/profit after tax were above expectations owing to healthy volume growth. Revenue was down by 12.5% YoY (-2.4% QoQ) to Rs 20.4 billion versus our estimate of Rs 17.7 billion owing to a sharp dip in realizations exacerbated by intense price pressures. Volume was down by 2.6% YoY (+3.0% QoQ) to 4.5 million tonne (our estimate 3.8 mt). Blended Realization/tonne declined sharply by 10.2% YoY and 5.2% QoQ to Rs 4,539 (our estimate Rs 4,646/tonne). Ebitda was down 21.7% YoY (-2.3% QoQ) to Rs 3.1 billion; versus our estimate of Rs 2.2 billion. Ebitda/tonne dipped 19.6% YoY to Rs 695 due to weak realizations; despite a strong Rs 344/tonne saving in operating costs. Cement capacity utilization for the quarter stood at 75% (versus 84% in Q2 FY24). The share of blended cement improved to 70% (69% in Q1 FY25) while premium products accounted for 27% of the portfolio. We forecast a revenue/Ebitda/PAT CAGR of 6%/11%/24% over FY24-FY26E backed by a healthy 6.5% growth in volumes. We value Ramco Cements at 14 times (previous 13 times) FY26E EV/Ebitda arriving at a target price of Rs 1,000 (previous Rs 950) to factor in the expected strong government infrastructure push, particularly in Ramco’s core markets. We maintain a Buy..Click on the attachment to read the full report:.Star Cement Q2 Results Review - Profitability To Improve As Cost Declines, Incentives Rises: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

The Ramco Cements Q2 Results Review - Outlook Remains Favorable; Maintain 'Buy': Systematix

Opex cost/tonne has dropped by ~Rs 900/tn over the past eight quarters owing to a consistent ramp up in renewable power facilities, says the brokerage.

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