#SALES #GROWTH
The company generated a revenue of โน8,518 cr in FY25, it decreased by 9% YoY. The sales volume during the period stood at 18.5 MT (including 0.33 MT from construction chemicals), it was higher by ~1% on a YoY basis. In the same period, blended realization declined by 10% YoY to โน4,604 per tonne. Share of Ordinary Portland Cement (OPC) and B2B sales in FY25 was as followsโ 31% and 34%, respectively. In FY25, the cement capacity was increased by 1.3 MTPA toto 24 MTPA. In FY24, the sales volume of cement increased by 21% YoY and stood at 18.1 MT. The revenue registered was โน9,376 cr up by 15% YoY. The cement capacity utilization for the FY24 is at 83%. In Kolimigundla railway siding will be commissioned in September 2024. The new units for dry mix products in Andhra Pradesh is ready for commercial production and another unit in Orissa is expected to be commissioned in September 2024.
The company generated a revenue of โน8,518 cr in FY25, it decreased by 9% YoY. The sales volume during the period stood at 18.5 MT (including 0.33 MT from construction chemicals), it was higher by ~1% on a YoY basis. In the same period, blended realization declined by 10% YoY to โน4,604 per tonne. Share of Ordinary Portland Cement (OPC) and B2B sales in FY25 was as followsโ 31% and 34%, respectively. In FY25, the cement capacity was increased by 1.3 MTPA toto 24 MTPA. In FY24, the sales volume of cement increased by 21% YoY and stood at 18.1 MT. The revenue registered was โน9,376 cr up by 15% YoY. The cement capacity utilization for the FY24 is at 83%. In Kolimigundla railway siding will be commissioned in September 2024. The new units for dry mix products in Andhra Pradesh is ready for commercial production and another unit in Orissa is expected to be commissioned in September 2024.
โค1๐1
#EBITDA #GROWTH
In FY25, EBITDA per ton was โน690, lower by 20% on a YoY basis. The company generated an EBITDA of โน1,595 cr in the same period, it de-grew by 20% YoY. The cost of producing a tonne of cement reduced by 7% YoY to โน3,915. Lower EBITDA can be attributed to lower realisation in South and East markets. In FY24, the EBITDA stood at โน1,595 cr and EBITDA per ton stood at โน867 compared to โน796 in FY23. The power & fuel cost per ton of cement for FY24 has decreased to โน1,389 compared to โน1,771 in FY23. The change in utility of sale of wind power to captive use has also helped to reduce the overall power cost. The overall green power usage has significantly improved from 22% in FY23 to 34% in FY24 in view of change in utility of wind power to captive purposes. Cost of raw materials increased by 5% YoY from โน903 to โน948 per ton for the current year due to inflationary impact on procurement cost.
In FY25, EBITDA per ton was โน690, lower by 20% on a YoY basis. The company generated an EBITDA of โน1,595 cr in the same period, it de-grew by 20% YoY. The cost of producing a tonne of cement reduced by 7% YoY to โน3,915. Lower EBITDA can be attributed to lower realisation in South and East markets. In FY24, the EBITDA stood at โน1,595 cr and EBITDA per ton stood at โน867 compared to โน796 in FY23. The power & fuel cost per ton of cement for FY24 has decreased to โน1,389 compared to โน1,771 in FY23. The change in utility of sale of wind power to captive use has also helped to reduce the overall power cost. The overall green power usage has significantly improved from 22% in FY23 to 34% in FY24 in view of change in utility of wind power to captive purposes. Cost of raw materials increased by 5% YoY from โน903 to โน948 per ton for the current year due to inflationary impact on procurement cost.
๐ฅ1
#PAT #GROWTH
In FY25, they generated a PAT of โน268 cr. On a YoY basis PAT declined by 32%. During the period, finance cost and depreciation increased by 10% and 8% YoY, respectively. Increase in finance cost and depreciation was on account of commissioning of new capacity. During the quarter and year ended 31st March 2025, PAT included profit on sale of investments and surplus land of โน199.4 cr (after consolidation adjustments) and profit on sale of investment and surplus land amounting, which was accounted as exceptional item. In FY24, the PAT stood at โน394 cr. There was an increase in finance cost & depreciation on account of commissioning of units in JPM Line III, Kolimigundla, R RNagarLine III and Dry Mortar Plants.
In FY25, they generated a PAT of โน268 cr. On a YoY basis PAT declined by 32%. During the period, finance cost and depreciation increased by 10% and 8% YoY, respectively. Increase in finance cost and depreciation was on account of commissioning of new capacity. During the quarter and year ended 31st March 2025, PAT included profit on sale of investments and surplus land of โน199.4 cr (after consolidation adjustments) and profit on sale of investment and surplus land amounting, which was accounted as exceptional item. In FY24, the PAT stood at โน394 cr. There was an increase in finance cost & depreciation on account of commissioning of units in JPM Line III, Kolimigundla, R RNagarLine III and Dry Mortar Plants.
๐1
#EBITDA #MARGIN
In FY25, EBITDA margin contracted by 222 bps YoY to 14.5%, this was on the back of reduced realisation along with a 109 bps YoY reduction in gross margin, which stood at 32.5%. Furthermore, employee cost as a percentage of net revenue from operations increased by 59 bps YoY to 6.5%; logistics cost increased by 209 bps YoY to 24.3% and other expenses increased by 53 bps YoY to 11.6%. However, power and fuel cost decreased by 209 bps YoY to 24.3%. Average lead distance during the year was 260 km v/s 280 km in FY24 and rail share of cement dispatches was ~9%, an increase of 100 bps YoY. In FY24, the EBITDA margin 16.7% v/s 14.5% in FY23. Decreasing fuel and power cost led to an positive impact on the EBITDA margins, Higher demand during the year led to higher plant capacity utilization which led to higher operating leverage.
In FY25, EBITDA margin contracted by 222 bps YoY to 14.5%, this was on the back of reduced realisation along with a 109 bps YoY reduction in gross margin, which stood at 32.5%. Furthermore, employee cost as a percentage of net revenue from operations increased by 59 bps YoY to 6.5%; logistics cost increased by 209 bps YoY to 24.3% and other expenses increased by 53 bps YoY to 11.6%. However, power and fuel cost decreased by 209 bps YoY to 24.3%. Average lead distance during the year was 260 km v/s 280 km in FY24 and rail share of cement dispatches was ~9%, an increase of 100 bps YoY. In FY24, the EBITDA margin 16.7% v/s 14.5% in FY23. Decreasing fuel and power cost led to an positive impact on the EBITDA margins, Higher demand during the year led to higher plant capacity utilization which led to higher operating leverage.
๐1
#PAT #MARGIN
For the year ended 31st March 2025, PAT margin was 3.1%, it contracted by 105 bps YoY. Effective tax rate during the period was lower to 16% due to deferred tax expense, however there was zero current tax liability. In FY24, the PAT margin remained flat on a YoY basis at ~4.2%. Effective tax rate during the year was ~27% as against 28% in FY23.
For the year ended 31st March 2025, PAT margin was 3.1%, it contracted by 105 bps YoY. Effective tax rate during the period was lower to 16% due to deferred tax expense, however there was zero current tax liability. In FY24, the PAT margin remained flat on a YoY basis at ~4.2%. Effective tax rate during the year was ~27% as against 28% in FY23.
๐ฅ1
#ROCE
In FY25, return on capital employed is envisaged to reduce due to reduced profitability lead by a weak demand environment. In FY24, the EBIT stood at โน958 cr and capital employed was at โน12,298 cr. EBIT increased by ~34% and during the same period increase in capital employed was ~7% due to which the ratio improved by ~164 bps on aYoYbasis to 8.2%.
In FY25, return on capital employed is envisaged to reduce due to reduced profitability lead by a weak demand environment. In FY24, the EBIT stood at โน958 cr and capital employed was at โน12,298 cr. EBIT increased by ~34% and during the same period increase in capital employed was ~7% due to which the ratio improved by ~164 bps on aYoYbasis to 8.2%.
๐1
#ROE
As on 31st March 2025, net worth increased by 3% YoY to โน7,442 cr and net profit decreased by 32% YoY to โน268 cr. For the year under review, ROE is anticipated to be ~3.7% due to reduced profitability and asset turnover ratio. In FY24, the net worth was at โน7,238 cr and the net profit stood at โน394 cr. The ratio registered a slight increase from 5.07% in FY23 to ~5.6% in FY24. Increase in ROE was due to higher financial leverage and marginally better asset utilization.
As on 31st March 2025, net worth increased by 3% YoY to โน7,442 cr and net profit decreased by 32% YoY to โน268 cr. For the year under review, ROE is anticipated to be ~3.7% due to reduced profitability and asset turnover ratio. In FY24, the net worth was at โน7,238 cr and the net profit stood at โน394 cr. The ratio registered a slight increase from 5.07% in FY23 to ~5.6% in FY24. Increase in ROE was due to higher financial leverage and marginally better asset utilization.
๐ฅ1
#COMPANY #POTENTIAL
โข India is the second largest producer and consumer of cement, with a capacity of ~670 MTPA. The industry is an essential contributor to the Indian economy, providing employment to millions of people and driving infrastructure development. As per Crisilโs estimate, Indian cement companies expanded its capacity by 33-35 MT in FY25. (Source : CRISIL Research) โข Indiaโs per capita cement consumption is 250 kg, far below Chinaโs 1,600 kg, offering substantial growth potential. Cement demand inIndia is expected to grow 1.2x to 1.5x of GDP. In FY26, Indiaโs GDP is envisaged to grow at ~6.5%. โข InSouthern region, during the first two months of FY26, the average cement prices improved by โน30-โน35 per bag in trade and โน60โน70 per bag in non-trade. In the eastern region, trade price remain flat whereas non-trade price improved by around โน10 per bag from the exit prices of March 2025. The management believes the prices would sustain amid rising pace of cement capacity additions/consolidation in Southern region. โข In the FY26 Budget, allocation for capex is at โน11.2 lakh cr besides โน1.5 lakh crore as 50-year interest-free loans to states for infrastructure development. Personal income tax reductions is also expected to boost consumption. Industrial activity is expected to rebound on the back of higher government spending. Normal monsoon predictions could boost farm incomes, driving demand for rural housing. Urban housing is expected to regain momentum, owing to a low base, interest rate cuts and improved pace of execution under Pradhan Mantri Awas Yojanaโ Urban. The government has allocated ~โน78,000 crore towards PM Awas Yojana in FY26. โข In February 2025, Government of Tamil Nadu (TN) increased royalty on limestone to โน160 per tonne. Ramco Cement produced ~50% of its clinker (key raw material limestone) in TN, resulting in additional cost implication of ~โน200 per tonne of cement produced in TN.
โข TheBharatmala projectโ The government has set a target to lay down 60,000 kms of road with a total outlay of โน6.9 lakh crore out of which 34,800 km are targeted in Phase 1. Till March 2024, road projects spanning 17,411 km have been built under Phase 1. As of FY24, out of a total length of 34,800 km (Bharatmala Phase I), 27,391 km have been awarded (including approved but not awarded), 17,411 km have been constructed and total capital outlay has been โน8.75 lakh crore. โข Government of Indiaโs National Infrastructure Pipeline (NIP), decade of infrastructure, ~$4 trillion investment expected. Highways (~15,000 km/year), ports, bullet trains, rail/metro, renewables will push the demand.
โข India is the second largest producer and consumer of cement, with a capacity of ~670 MTPA. The industry is an essential contributor to the Indian economy, providing employment to millions of people and driving infrastructure development. As per Crisilโs estimate, Indian cement companies expanded its capacity by 33-35 MT in FY25. (Source : CRISIL Research) โข Indiaโs per capita cement consumption is 250 kg, far below Chinaโs 1,600 kg, offering substantial growth potential. Cement demand inIndia is expected to grow 1.2x to 1.5x of GDP. In FY26, Indiaโs GDP is envisaged to grow at ~6.5%. โข InSouthern region, during the first two months of FY26, the average cement prices improved by โน30-โน35 per bag in trade and โน60โน70 per bag in non-trade. In the eastern region, trade price remain flat whereas non-trade price improved by around โน10 per bag from the exit prices of March 2025. The management believes the prices would sustain amid rising pace of cement capacity additions/consolidation in Southern region. โข In the FY26 Budget, allocation for capex is at โน11.2 lakh cr besides โน1.5 lakh crore as 50-year interest-free loans to states for infrastructure development. Personal income tax reductions is also expected to boost consumption. Industrial activity is expected to rebound on the back of higher government spending. Normal monsoon predictions could boost farm incomes, driving demand for rural housing. Urban housing is expected to regain momentum, owing to a low base, interest rate cuts and improved pace of execution under Pradhan Mantri Awas Yojanaโ Urban. The government has allocated ~โน78,000 crore towards PM Awas Yojana in FY26. โข In February 2025, Government of Tamil Nadu (TN) increased royalty on limestone to โน160 per tonne. Ramco Cement produced ~50% of its clinker (key raw material limestone) in TN, resulting in additional cost implication of ~โน200 per tonne of cement produced in TN.
โข TheBharatmala projectโ The government has set a target to lay down 60,000 kms of road with a total outlay of โน6.9 lakh crore out of which 34,800 km are targeted in Phase 1. Till March 2024, road projects spanning 17,411 km have been built under Phase 1. As of FY24, out of a total length of 34,800 km (Bharatmala Phase I), 27,391 km have been awarded (including approved but not awarded), 17,411 km have been constructed and total capital outlay has been โน8.75 lakh crore. โข Government of Indiaโs National Infrastructure Pipeline (NIP), decade of infrastructure, ~$4 trillion investment expected. Highways (~15,000 km/year), ports, bullet trains, rail/metro, renewables will push the demand.
๐3
#COMPANY #OUTLOOK
โข In Kolimigundla, construction of railway siding is complete, and commissioning is under progress. The siding is expected to be available for usage during Q1 FY26. โข Thecapacity expansion of construction chemicalโs unit in Odisha is expected to be commissioned before June 2025. โข Thecompanypropose to double the clinker capacity in Kolimigundla to 6.3 MTPA and double the cement capacity to 3 MTPA with 15 MWofWHRSatanestimated project cost of โน1,250 cr. This expansion is scheduled to be commissioned in FY26. The aggregate installed capacity of company would reach 19 MTPA for clinker and 30 MTPA for cement by FY26. Along with the ongoing capex they will also look for opportunities to de-bottleneck existing facilities and adding grinding capacities in existing locations with nominal capex. โข It have proposed to install waste heat recovery system (WHRS) plant with a capacity of 10 MW in Ramasamy Raja Nagar at an estimated cost of โน153 cr and is scheduled for commissioning by July 2025. In Kolimigundla, WHRS capacity of 15 MW will be commissioned along with Kiln Line-2, thaking the total WHRS capacity to 68 MW by FY26. The total green power capacity as on 31st March 2025 was 211 MWandwillbe236 MWbytheendFY26. โข Thecompanyhasso faracquired 54% of mininglandand 13% of factory lands for green field project in Karnataka. โข During FY25, the company has monetized โน460 cr out of targeted value of โน1,000 cr towards disposal of non-core assets. The company will use the said proceeds to reduce its debt and to meet its capex requirements. The company is on track to achieve the target before July 2025 as committed earlier.
โข In Kolimigundla, construction of railway siding is complete, and commissioning is under progress. The siding is expected to be available for usage during Q1 FY26. โข Thecapacity expansion of construction chemicalโs unit in Odisha is expected to be commissioned before June 2025. โข Thecompanypropose to double the clinker capacity in Kolimigundla to 6.3 MTPA and double the cement capacity to 3 MTPA with 15 MWofWHRSatanestimated project cost of โน1,250 cr. This expansion is scheduled to be commissioned in FY26. The aggregate installed capacity of company would reach 19 MTPA for clinker and 30 MTPA for cement by FY26. Along with the ongoing capex they will also look for opportunities to de-bottleneck existing facilities and adding grinding capacities in existing locations with nominal capex. โข It have proposed to install waste heat recovery system (WHRS) plant with a capacity of 10 MW in Ramasamy Raja Nagar at an estimated cost of โน153 cr and is scheduled for commissioning by July 2025. In Kolimigundla, WHRS capacity of 15 MW will be commissioned along with Kiln Line-2, thaking the total WHRS capacity to 68 MW by FY26. The total green power capacity as on 31st March 2025 was 211 MWandwillbe236 MWbytheendFY26. โข Thecompanyhasso faracquired 54% of mininglandand 13% of factory lands for green field project in Karnataka. โข During FY25, the company has monetized โน460 cr out of targeted value of โน1,000 cr towards disposal of non-core assets. The company will use the said proceeds to reduce its debt and to meet its capex requirements. The company is on track to achieve the target before July 2025 as committed earlier.
โก4๐1
The Ramco Cements Limited 880-925
Expected level 1100
Support 800
Expected level 1100
Support 800
๐ฅ5๐ฏ3๐2
DOMS Industries company details report
DOMSโ consol sales grew by c.25% with organic sales growth of c.17% (tad lower vs its guidance of 18-20%). However, this was predominantly driven by capacity constraints (no major capacity addition happened in scholastic stationary/art material in FY25 & some delay in construction activities) and demand has not been a challenge. With addition of lines (for pens, pencil processing, paper stationary, etc.) in existing infrastructure and new greenfield capacities coming up from end of FY26, the supply side challenges should ease. This apart, DOMS has been widening its portfolio (launch of back to school range, DOMS tots range, adhesives, fine arts, paper stationary), which we believe should enable it to achieve organic revenue growth guidance of c.18-20% p.a. over medium term. EBITDA margins are likely to be within guided range of 16.5-17.5%, as focus remains on increasing market share. Going ahead pace of commissioning of new capacities will be key for acceleration in writing instruments. Execution on Paper stationary & Uniclan business (distribution expansion) over medium term will be another key monitorable. We like DOMS brand strength, R&D capabilities, fully backward integrated manufacturing setup and promoterโs ability to leverage these tools to create new growth engines and get product & pricing right. This we believe will enable it to continue outperforming industry growth
DOMSโ consol sales grew by c.25% with organic sales growth of c.17% (tad lower vs its guidance of 18-20%). However, this was predominantly driven by capacity constraints (no major capacity addition happened in scholastic stationary/art material in FY25 & some delay in construction activities) and demand has not been a challenge. With addition of lines (for pens, pencil processing, paper stationary, etc.) in existing infrastructure and new greenfield capacities coming up from end of FY26, the supply side challenges should ease. This apart, DOMS has been widening its portfolio (launch of back to school range, DOMS tots range, adhesives, fine arts, paper stationary), which we believe should enable it to achieve organic revenue growth guidance of c.18-20% p.a. over medium term. EBITDA margins are likely to be within guided range of 16.5-17.5%, as focus remains on increasing market share. Going ahead pace of commissioning of new capacities will be key for acceleration in writing instruments. Execution on Paper stationary & Uniclan business (distribution expansion) over medium term will be another key monitorable. We like DOMS brand strength, R&D capabilities, fully backward integrated manufacturing setup and promoterโs ability to leverage these tools to create new growth engines and get product & pricing right. This we believe will enable it to continue outperforming industry growth
๐ฅ3โค2๐2
Widening portfolio & creating new growth engines leveraging its innovation/R&D expertise:
One of the key strengths of DOMS has been its innovation capabilities in the stationary segment and it continues to remain agile in this aspect โ visible from launch of Tots range, widening of its Pens portfolio, launch of back to school range (bags), value added offerings in kits & combos, adhesives range, markers, mechanical pencils & fine art products. DOMSโ R&D and backward integration strength to provide a value for money offering has been instrumental in creating newer growth opportunities, gaining market share in core categories & outperforming peers in stationary segment.
One of the key strengths of DOMS has been its innovation capabilities in the stationary segment and it continues to remain agile in this aspect โ visible from launch of Tots range, widening of its Pens portfolio, launch of back to school range (bags), value added offerings in kits & combos, adhesives range, markers, mechanical pencils & fine art products. DOMSโ R&D and backward integration strength to provide a value for money offering has been instrumental in creating newer growth opportunities, gaining market share in core categories & outperforming peers in stationary segment.
๐2๐ซก2๐ฅ1