In a call to analysts, company officials said the increase in prices is being done keeping in view the rise in fuel prices.
In a call to analysts, company officials said the increase in prices is being done keeping in view the rise in fuel prices.
Ramco Cements has announced a price hike of ₹20-25 per bag in the South effective June.
In a call to analysts, company officials said the increase in prices is being done keeping in view the rise in fuel prices. However, its stability needs to be seen, he said.
Last year, demand was strong during April and May against a low base due to the lockdown. Demand had shown an improvement as infrastructure projects picked up in recent months. Overall, the industry growth is expected to be 10% and the company may achieve 15% volume growth in FY13.
The company said it plans to be net debt free by FY26, provided there are no major capital outlays.
As of FY22, the debt stood at ₹3,800 crore and the plan was to repay around ₹500 crore during the current financial year.
On expansion, the company said it plans to set up one more unit of 1-1.5 MTPA in Karnataka at a capital expenditure of Rs 300-350 crore. For this the process of land acquisition was going on. In addition, it had planned a capital expenditure of ₹1,200-1,300 crore over the next two years.
Recently, the company won bids for a limestone mine in Karnataka at a premium of 25% to the base price, which was lower than the recent bids. These mines can be used for an integrated plant to be set up in the state. Ramco Cements said that once it can be used to feed the grinding unit in Maharashtra.