(Reuters) -Ramco Cements said on Thursday it sees improving cement prices in its key south India market, after reporting a fourth-quarter profit slump hurt by lackluster prices and lower volumes in a seasonally strong period.
Adjusted net profit from the cement business sank over 76% to 384.3 million rupees ($4.5 million) in the quarter ended March 31. The company registered a one-time gain of 108.3 million rupees, tied to sale of surplus lands and investments.
“In southern region, during the first two months of FY26, the average cement prices have improved… the company believes the prices would sustain amid rising pace of cement capacity additions (in the region),” it said.
South India, which gives Ramco three-fourths of its total volumes, has lagged other regions of the country in terms of pricing growth for many quarters but is now climbing out of that lull, Jefferies said earlier this month.
That is set to benefit companies like Ramco and Dalmia Bharat – which are heavily-focussed in the south – and also other big players like UltraTech and Ambuja who have struck back-to-back capacity expansion deals in the market.
Ramco said its sales volumes fell 4% in the reported quarter – usually seasonally strong as favorable weather spurs construction activities and drives cement demand.
Meanwhile, average all-India cement prices were also 2% lower on-year for the reported quarter, Ambit Capital’s data showed.
That pushed revenues down by over 10%, much bigger than the 0.4% fall estimated by analysts on an average.
Ramco also said that Tamil Nadu state’s recent levy on mining limestone – from which cement is made – would increase the per ton cost of production by 200 rupees.
The levy “is the highest in the country… the cement manufacturers in Tamil Nadu, through industry association, have represented to the government seeking relief, which is under consideration,” the company said.
($1 = 85.9750 Indian rupees)
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Sumana Nandy and Shailesh Kuber)
