Ramco Cements, the fifth largest cement producer in India, said on Wednesday its standalone net profit during the third quarter of current financial year (Q3 FY20) went down by 6 per cent at Rs 94.8 crore against Rs 101 crore year-on-year.
The revenue net of goods and services tax grew to Rs 1,286 crore against Rs 1,216 crore while operating profit dropped to Rs 211 crore in Q3 FY20 against Rs 221 crore in Q3 FY19.
The tax expenses halved to Rs 15 crore from Rs 30 crore in the same period. The company witnessed sluggish demand in its core markets coupled with pressure on prices due to active monsoon, the company said in a statement.
"Demand in eastern markets was more visible during the current quarter but the prices, particularly in West Bengal, were very poor," it said adding the trend this month is positive with improvement in prices.
During the nine months ended December 2019, Ramco's cement sales totalled 8.27 million tonnes compared to 7.83 million tonnes of the corresponding period of previous year. The exports increased by 21 per cent in the same period.
Operating costs continue to remain under control in view of favourable prices of fuels like pet coke and diesel. The company has been constantly focussing on various cost reduction initiatives and improving productivity.
"Ramco's marketing initiatives of right products for the right applications have attained the desired momentum. The company is also making continuous efforts to optimise the supply chain efficiency," it said.
( With inputs from ANI )