Ramco Cements plans Rs 12 bn capex for FY26 and advances Rs 10 bn sale
10 Feb 2025
2 Min Read
CW Team
Ramco Cements has announced a capital expenditure (capex) plan of Rs 12 billion for the next fiscal year, maintaining its guidance for FY25. The company has raised Rs 4.43 billion this fiscal through the sale of non-core assets.
During the third quarter of the current fiscal, Ramco Cements incurred a capex of Rs 2.56 billion, bringing the total spending for the first nine months to Rs 8 billion. The company has set a target of monetizing Rs 10 billion worth of non-core assets and has realized Rs 4.43 billion so far, with an additional Rs 100 million received as advances for assets nearing finalization.
The funds generated from these asset sales have been utilised to reduce debt, bringing the company鈥檚 net debt to Rs 46.16 billion as of December 31, 2024. In Q3FY25 alone, debt reduction amounted to Rs 4.87 billion.
Ramco Cements remains on course to achieve a cement production capacity of 30 MTPA by March 2026. This expansion includes the commissioning of a second production line in Kolimigundla, capacity enhancements through de-bottlenecking, and additional grinding facilities. A railway siding at Kolimigundla is scheduled for commissioning in March 2025.
The company is also investing in sustainable energy initiatives, with a 10 MW Waste Heat Recovery System (WHRS) at RR Nagar expected to be operational by June 2025 and a 15 MW WHRS unit at Kolimigundla set to be commissioned alongside Kiln Line-2 by March 2026. A new construction chemicals unit in Odisha is expected to be ready before March 2025. Land acquisition for a greenfield project in Karnataka has progressed, with 53 per cent of mining land and 13 per cent of factory land secured.
For Q3FY25, Ramco Cements reported a profit after tax of Rs 3.25 billion, significantly higher than Rs 930 million in the previous year, primarily due to an exceptional income of Rs 3.29 billion from asset sales. Net revenue declined by 6 per cent year-on-year to Rs 19.88 billion due to a 14 per cent drop in cement prices.
Total sales volume, including construction chemicals, increased by 9 per cent to 4.37 million tonne. Cement capacity utilization saw a slight improvement to 75 per cent in Q3FY25 from 74 per cent in Q3FY24. However, EBITDA declined by 28 per cent to Rs 2.91 billion due to weaker cement prices, despite cost reductions from lower fuel prices and improved manufacturing efficiency.
News source: Hindu Businessline
Ramco Cements has announced a capital expenditure (capex) plan of Rs 12 billion for the next fiscal year, maintaining its guidance for FY25. The company has raised Rs 4.43 billion this fiscal through the sale of non-core assets.
During the third quarter of the current fiscal, Ramco Cements incurred a capex of Rs 2.56 billion, bringing the total spending for the first nine months to Rs 8 billion. The company has set a target of monetizing Rs 10 billion worth of non-core assets and has realized Rs 4.43 billion so far, with an additional Rs 100 million received as advances for assets nearing finalization.
The funds generated from these asset sales have been utilised to reduce debt, bringing the company鈥檚 net debt to Rs 46.16 billion as of December 31, 2024. In Q3FY25 alone, debt reduction amounted to Rs 4.87 billion.
Ramco Cements remains on course to achieve a cement production capacity of 30 MTPA by March 2026. This expansion includes the commissioning of a second production line in Kolimigundla, capacity enhancements through de-bottlenecking, and additional grinding facilities. A railway siding at Kolimigundla is scheduled for commissioning in March 2025.
The company is also investing in sustainable energy initiatives, with a 10 MW Waste Heat Recovery System (WHRS) at RR Nagar expected to be operational by June 2025 and a 15 MW WHRS unit at Kolimigundla set to be commissioned alongside Kiln Line-2 by March 2026. A new construction chemicals unit in Odisha is expected to be ready before March 2025. Land acquisition for a greenfield project in Karnataka has progressed, with 53 per cent of mining land and 13 per cent of factory land secured.
For Q3FY25, Ramco Cements reported a profit after tax of Rs 3.25 billion, significantly higher than Rs 930 million in the previous year, primarily due to an exceptional income of Rs 3.29 billion from asset sales. Net revenue declined by 6 per cent year-on-year to Rs 19.88 billion due to a 14 per cent drop in cement prices.
Total sales volume, including construction chemicals, increased by 9 per cent to 4.37 million tonne. Cement capacity utilization saw a slight improvement to 75 per cent in Q3FY25 from 74 per cent in Q3FY24. However, EBITDA declined by 28 per cent to Rs 2.91 billion due to weaker cement prices, despite cost reductions from lower fuel prices and improved manufacturing efficiency.
News source: Hindu Businessline
Next Story
India Remains Top 10 Global Destination for Land Investments: Colliers
Asia Pacific continues to assert its dominance on the global investment stage and play a key role in overall capital movements, according to a new report from Colliers. Colliers鈥� Global Capital Flows June 2025 report found Singapore, Japan and Hong Kong among the top 10 sources of global capital in the first quarter, with Singapore in fourth position, Japan seventh and Hong Kong tenth.While Japan and Australia ranked among the top 10 global cross-border capital destinations for standing assets, India continued to feature prominently at the seventh place in the top 10 global cross-border capi..
Next Story
First Liebherr 43 K Fast-Erecting Crane Goes to Zimmerei Frank
Munich-based carpentry company Zimmerei Frank is the first customer to take delivery of a new Liebherr 43 K fast-erecting crane. The crane was successfully delivered in May 2025 and has joined a fleet of 14 already existing Liebherr cranes. The medium-sized company, which has a 60-strong workforce, has opted for Liebherr鈥檚 quality, reliability and collaborative partnership on all its projects for years.Liebherr鈥檚 43 K succeeds the popular 34 K, a crane model that Zimmerei Frank has always had good experiences with. The company has now decided to opt for the 43 K; the first crane produced f..
Next Story
H&H Launches Eden House Za鈥檃beel in DIFC鈥檚 Prime Residential District
June 11, 2025: H&H, a leader in Dubai鈥檚 real estate landscape, has launched Eden House Za鈥檃beel, a new residential development under its flagship Eden House brand. Strategically located at the edge of Za鈥檃beel and DIFC, the project marks a new chapter in the brand鈥檚 growth and continues its commitment to high design and refined living. Conceptualised by DXB Lab and interiors by Tristan Auer, Eden House Za鈥檃beel offers a curated collection of one- to three-bedroom apartments and select penthouses with wrap-around balconies and bespoke finishes. The architecture draws inspirat..
