Ramco Inds

Ramco Industries, market leader of fibre cement sheets in India, the company posted a very good set of numbers for Q1FY17. Despite a flat net sales at Rs.226 crore (YoY), it ended the quarter with a net profit of Rs.30 crore, up over 4 times. A 17% drop in raw material costs  and over 5% decrease in total expenses, the company’s EBITDA came in at Rs.35 crore, up 59%. EBITDA margin was up from 9.44% to 14.96%. The over 18 times rise in other income also helped boost the bottomline.

The company has three verticals – building products, textiles and windmills. Building products contributes 84% to total revenue and its EBIT showed a 86% rise. Textiles contributes 12% to revenue and its EBIT was up 4%. The windmill vertical though a very small contributor, its EBIT doubled to Rs.3 crore.

Equity capital is at Rs.8.67 crore and EPS is at Rs.3.49 (FV of Re.1/share). Promoters stake is at 53.92%.