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In an analysts’ call, the company officials said the price increase was being effected in view of the rise in fuel prices
In an analysts’ call, the company officials said the price increase was being effected in view of the rise in fuel prices
Ramco Cements has announced a price increase of ₹20-25 per bag in the South effective June.
In an analysts’ call, the company officials said the price increase was being effected in view of the rise in fuel prices. However, its sustainability needed to be watched, they added.
During April and May, the demand was robust as against the low base due to lockdowns last year. The demand had shown improvement as infrastructure projects had picked up in the recent months. Overall, the industry growth could be at 10% and the company would likely achieve a volume growth of 15% in FY23.
The company said it was planning to become net debt-free by FY26, provided no major capex was planned.
As of FY22, debt stood at ₹3,800 crore and plans were on to repay about ₹500 crore during the current fiscal.
On expansion, the company said it was planning to install one more unit of 1-1.5 mtpa grinding capacity in Karnataka at a capex of ₹300-350 crore. Land acquisition for the same was in process. Besides, it had planned a capex of ₹1,200-1,300 crore over the next two years.
Recently, the company had won the bid for a limestone mine in Karnataka at 25% premium of the base price, which was lower than the recent bids. These mines could be used for an integrated plant, which would come up in the State. It could also be used to feed the grinding unit in Maharashtra once it came up, Ramco Cements said.
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