The Ramco Cement Q1 FY27 Results (NSE: RAMCOCEM)
Signal: Revenue declined
The read
The sequential revenue recovery to ₹2,273.05 Cr, up 9.6% QoQ, did not translate into earnings momentum: operating margin fell to 14% from 15% QoQ and 19% YoY, while PAT declined 63.1% QoQ to ₹31.24 Cr; the recovery remains operationally unproven and is further clouded by ₹12.62 Cr of exceptional items.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,273.05 Cr | -12.9% | +9.6% |
| EBIT | ₹123.35 Cr | N/A | |
| Net profit | ₹31.23 Cr | -79.3% | |
| EPS | ₹1.32 | -79.3% | |
| EBIT margin | 13.8% |
P&L walk
Revenue declined 12.9% YoY to ₹2,273.05 Cr despite a 9.6% QoQ recovery; operating margin contracted 500bps YoY to 14%, and PAT fell 79.3% YoY to ₹31.23 Cr after ₹12.62 Cr of exceptional items.
Key positives
- Consolidated revenue recovered 9.6% QoQ to ₹2,273.05 Cr after the prior quarter's ₹2,074.02 Cr, although it remained 12.9% below the year-ago ₹2,610.32 Cr.
- Finance costs declined 8.7% QoQ to ₹95.58 Cr, while the debt-equity ratio remained moderate at 0.49x.
- Receivable days improved to 25 from 29 YoY, indicating better receivables turnover.
Key concerns
- Operating margin contracted 500bps YoY to 14% and 100bps QoQ, reversing the recent margin recovery visible in the prior-year comparative.
- PAT fell 79.3% YoY to ₹31.23 Cr despite revenue recovering sequentially, showing weak conversion from revenue into earnings.
- Inventory turnover worsened to 45 days from 36 days QoQ, a 9-day increase that bears monitoring alongside the margin decline.
Earnings quality: includes an exceptional item
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