Marking a significant turnaround from a net loss of Rs 4.15 crore in Q2, FY24, Ramco Industries (RIL), part of the Chennai-based Ramco Group, reported a consolidated net profit of Rs 16.88 crore for Q2 FY25. The company’s revenue from operations increased by 11.83 per cent Y-o-Y to Rs 353.17 crore during the quarter.

Profit before exceptional items and tax increased by 86 per cent to Rs 32.55 crore in Q2 FY25, compared to Rs 17.50 crore in the corresponding quarter of the previous year. Total expenses for the quarter rose by 7.41 per cent to Rs 323.79 crore from Rs 301.44 crore in Q2 FY24. The cost of materials consumed increased by 20.3 per cent YoY to Rs 232.69 crore, while employee benefits expenses grew by 19.85 per cent Y-o-Y to Rs 41.85 crore.

In H1, FY25, RIL's net profit increased by 58.92 per cent to Rs56.29 crore, driven by an 11.65 per cent increase in revenue from operations, which reached Rs 896.33 crore during the period.

In a strategic move, the company's board approved an investment to purchase shares of The Ramco Cements, with a commitment of up to Rs 160 crore in one or more tranches. Additionally, the board sanctioned the raising of credit facilities from banks, mutual funds, or non-banking financial companies (NBFCs) through secured, rated, redeemable non-convertible debentures, term loans, or other borrowing methods. The total amount for these credit facilities is set not to exceed Rs 160 crore, which will support corporate requirements and fund the investment in The Ramco Cements.

RIL’s core business includes spinning of cotton yarn as well as manufacture of asbestos-based fiber cement (FC) sheets used as roofing material and the production of calcium silicate boards. The company operates a fully-owned subsidiary in Sri Lanka, Sri Ramco Lanka, which manufactures and markets FC sheets. The broader Ramco Group has diversified interests spanning cement, FC sheets, textiles, and information technology.