Girish Pai

Nirmal Bang

Equity Bottom-Up

<p>4QFY21 Result Update</p>
<h2>The Ramco Cement Ltd.</h2>
<h3>Better pricing driving profitability</h3>
<p>TRCL reported numbers which were marginally lower than our expectations as reported EBITDA at Rs4.5bn was lower than our estimate of Rs4.7bn by 4.4%. We expected TRCL to report volume growth of 17.5% while the company reported volume growth of only 9.5% at 3.21 mn mt. The drop in volume is largely due to weak demand in south. Despite the drop in sales volumes, absolute EBITDA was down by only 4.4% as cement…</p>

<p>3QFY21 Result Update</p>
<h2>The Ramco Cement Ltd.</h2>
<h3>New clinker capacity to drive volume in FY22</h3>
<p>The Ramco Cement Ltd (TRCL) will commission its 3.75mn mt clinker units (1.5mn mt in Jayanthipuram and 2.25mn mt in Kurnool) by 1QFY22. These units will feed the recently commissioned grinding units as well as the existing units. With this expansion, we expect the volume growth to be higher than industry for FY22. We were earlier expecting weak profitability in the eastern operations to affect EBITDA in FY22…</p>

<p>2QFY21 Result Update</p>
<h2>The Ramco Cement Ltd</h2>
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<h3>Massive EBITDA beat driven by pricing; upside limited</h3>
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<p>The Ramco Cements Ltd (TRCL) has reported extremely good set of numbers for 2QFY21 on the back of better realization and lower costs. Realization was surprisingly higher and was the key reason for a strong beat in the results against our as well as consensus numbers. Realization was up ~5% QoQ against our expectation of a 3% decline. We believe that higher realization was a result of…</p>
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<p>1QFY21 Result Update</p>
<h2>The Ramco Cement Ltd</h2>
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<p><strong>Pricing is better but costs deteriorate; downgrade to Sell</strong></p>
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<p>We are downgrading The Ramco Cement Ltd (TRCL) to Sell from Accumulate as we believe that (1) current elevated pricing is unlikely to sustain (2) clinker shortages will lead to higher raw material costs and lower volume and (3) regional exposure to East and South is bound to result in volatile demand and pricing. The company has reported marginally good set of numbers for 1QFY21 on the…</p>
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India

The Ramco Cements Limited manufactures cement, ready mix concrete and dry mix products.  The Company also exports  cement and owns and operates a private sector wind mill power generating farm.

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