The Ramco Cements Ltd. share price target

Ramco cements posted Sales of Rs9906mn vs Rs9429mn , while EBIDTA fell 8% to Rs2791mn and PAT corrected by 7% to Rs 1447mn. Ramco costs have increased on account of higher fuel costs and increase in freight cost, these both cost account close to 50% of cost of cement production. The fuel cost have increased on account of increase in pet coke prices which have double in last one year. The freight cost have increased on account of higher volumes company is posting in the eastern part of country where the cost of transportation is very high as these grinding units are located far way from clinker units (lead distance more than 450km). We expect inflationary trend in key input cost which should keep profitability under pressure in near term as company has exhausted the key pet-coke inventory and now has to procure pet-coke at 84-85$/ton. On basis of unitary cost selling and distribution...

In-line results; announces 3.1MTPA expansion in East India Ramco reported in-line results with revenue growth at 7% YoY, aided by volume/realisation growth of 3.6%/1.4% YoY, respectively. EBITDA/t declined by 5.4% YoY as power/fuel and freight cost escalations more than offset the realisation growth. Other operating income for the quarter was higher YoY on an increase in wind farm income (Rs259mn in 1QFY18 vs Rs200mn in 1QFY17) and receipt of Rs90mn on account of industrial promotion assistance. The Company is expanding its grinding capacity from 16.5MTPA to 19.6MTPA via expansion in its West Bengal/ Vizag grinding units (1.1MTPA each) and entering the Odisha market with...

For the quarter ended March, 2017, company reported a rise in revenue by 6.4% to Rs 1,190 cr vs. Rs 1,118 cr in the corresponding quarter of previous year. RCL continued to report robust growth in sales volume for fifth successive quarter. Meaningful demand up-tick in Southern states especially during Mar'17 and venturing into new markets led to 9.5% YoY and 14.5% QoQ growth in RCL's sales volume to 2.28mnT (including 0.03mnT exports). RCL's sales volume (including exports of 0.14mnT) grew by 19% YoY to 8.35mnT in FY17. The company faced higher operating costs and higher transportation and handling...

Operating performance: Blended realization declined by Rs 300/ton (7%) QoQ at Rs 4,520/ton on correction in cement prices across states especially Andhra Pradesh/ Telangana. Operating cost was flat QoQ at Rs 3,400/ton. EBITDA/ton was Rs 1,124 (vs. Rs 1,480 in Q3FY17 and Rs 1,630 in Q4FY16).

Revenue rose by 8.86% to Rs. 1013.24 Cr in Q4FY17 when compared to the previous quarter

Ramco Cements (TRCL) numbers were marginally below expectations (EBITDA/t: Rs 1,078, -27.5%, -18.3% Est Rs 1,140). The decline in profitability was driven by realisations (Rs 4,450, -3.3% YoY, -5.0% QoQ) and higher freight costs (Rs 1,149/t, 9.6% YoY, 5.3% QoQ).

Despite strong sales volume, Ramco Cements (RCL) has reported a lower-than-estimated operating performance in 4QFY17 primarily due to sharp surge in operating cost per tonne to Rs3,398 (+8.5% YoY and +1.1% QoQ). Its EBITDA declined by 23% YoY and 9% QoQ to Rs2.4bn vs. our estimate of Rs2.7bn. While Power & Fuel and Freight costs remained in comfortable zone, a substantial rise in other expenditures/tonne (+39% YoY and +28% QoQ) and RM cost/ tonne (+16% YoY and 4% QoQ) led to higher operating cost. Notably, an additional expenditure of Rs170mn towards A&P; and Rs58mn provisioning towards impairment of assets arising out of kiln up-gradation led to higher other expenditures. Cement EBITDA/tonne stood at Rs1,052 vs....

Q3FY17 EBITDA at Rs 2.9 bn (up 16% YoY) was in line with our estimate. Volumes grew 22% YoY (2 mnt) primarily due to higher demand in Andhra Pradesh/Telangana and a low base. The company also sold additional volume in Eastern market (mainly West Bengal and Odisha). Average EBITDA/ton was Rs 1,480 (v..

Revenue decreased by 4.04% to Rs. 930.76 Cr in Q3FY17 when compared to the previous quarter. On the other hand, it increased by 15.24% when compared with Q3FY16.