Buoyed by a sharp rise in sale volume, Ramco Cements has reported a sharp rise in its net profit for the quarter ended December. The company announced that it will buy back shares worth R180 crore from the public, and also retired high cost debts to the tune of R530 crore in the current fiscal.
In a press release here on Tuesday, the company said that it has reported a 28.3% growth in its net profit during the quarter to R151.80 crore as against R118.30 crore in the same quarter last fiscal.
The revenue during the quarter grew 18% to R964.74 crore as against R820.42 crore in the same quarter last fiscal. The sharp rise in revenue was owing to a 22% rise in sale volume to 19.88 lakh tonne as against 16.26 lakh tonne reported in the same quarter last fiscal. Total expenses of the company was up 16.98% to R882.99 crore during the quarter against R754.79 crore a year ago. In a separate filing, the company informed that its board at its meeting held on Tuesday, approved the proposal to buy-back of equity shares for an aggregate amount not exceeding R180 crore, being 6.07% of the total paid up share capital and free reserves of the company with a share price not exceeding R720. Shares of the company were trading around R680 a share.
At the maximum buy-back price and buy-back size, the maximum number of equity shares bought back would be 25 lakh shares which is 1.05% equity shares. The company shall utilise at least 50% of the amount earmarked as the maximum buy back size of the buy back i.e R90 crore and based on that the company would purchase a minimum R12.50 lakh shares only, it said further in a statement.
For the period ended February 6, the company retired R530 crore out of internal accruals. The move is part of its sustained plans to retire debt since last fiscal to improve the profitability.