Shares of Ramco Cements Ltd currently trading at the price of ₹833.40 surged 6.63 percent on Friday by hitting a 52-week high of ₹835 or 8.02 percent.
One of the probable reasons for the stock to hit a high price is the company’s recent announcement of strong Q4 FY 22-23 earnings.
The company reported a 23 percent increase in net profit at ₹152 crore for the quarter that ended March 31, 2022, compared with ₹124 crore in the year-ago period,
The company board recommended a dividend of ₹2 per share of ₹1 each for the year ended March 31, 2023.
Sales of cement and dry mortar products increased by 45.5 percent totaling 4.70 million tonnes in Q4 FY23, up from 3.23 million tonnes in Q4 FY22, indicating a 46% increase in volume.
As per Consolidated financials of the previous quarter, their operating revenues have increased by 27.8 percent from ₹ 2,011 crores in Q3 to ₹ 2,572 crores in Q4 FY23. Similarly, for YoY comparison, the revenues increased from ₹6,003 crores during FY 21-22 to ₹ 8,157 crores in FY 22-23.
The net profit of the company has significantly increased by 130 percent from ₹ 65 crores in Q3 to ₹ 150 crores in Q4, Similarly, for YoY comparison the net profit was down from ₹ 892 crores during FY 21-22 to ₹ 341 crores in FY 22-23.
Ramco Cements Ltd is engaged in the manufacture of cement, Ready Mix Concrete and Dry mortar products. It primarily caters to the domestic market of India. The company is also engaged in the sale of surplus electricity generated from its windmills after meeting its captive requirements.
The basic profitability ratios exhibit operational efficiencies such as return on equity (ROE) and return on capital employed (ROCE) .ROE moved downwards from 13.31 percent during FY 21-22 to 4.58 percent in FY 22-23 and ROCE, keeping the time frame the same, moved from 8.82 percent to 6.19 percent and the debt-equity ratio stands at 0.65.
In the last year, the stock has jumped around 20.72 percent ranging from ₹ 689.10 to the current price levels.
According to the latest data pertaining to the shareholding pattern, the promoters hold a 42.29 percent stake, and Domestic Institutional Investors (DIIs) have a 35.85 percent stake in the company for FY 22-23.
Written by Omkar C
