Latest news with #Ramco
Business Standard
07-07-2025
- Business
- Business Standard
Ramco Systems partners with MCA Management Consultants
To enable organizations in the GCC region to transform their payroll operations Ramco Systems announced that its wholly owned subsidiary, Ramco Systems FZ-LLC, has entered into a partnership with MCA Management Consultants, a leading professional services firm in the GCC region. This partnership leverages Ramco's innovative payroll platform and managed services in conjunction with MCA's expert advisory services. Together, both the parties will enable organizations in the GCC region to transform their payroll operations. This partnership provides organizations in the GCC region with the powerful synergy of MCA's HR Advisory and Transformation services, as well as Ramco's Payce platform, which enables organizations with fast, effortless and precise payroll management.
Business Upturn
07-07-2025
- Business
- Business Upturn
Ramco Systems partners with MCA Management Consultants to transform payroll operations in GCC region
By Aman Shukla Published on July 7, 2025, 11:13 IST Ramco Systems Limited, a leading global provider of payroll software, has announced a strategic partnership between its wholly owned subsidiary, Ramco Systems FZ-LLC, and MCA Management Consultants, a premier professional services firm in the Gulf Cooperation Council (GCC) region. This collaboration brings together Ramco's advanced payroll platform – Ramco Payce – and MCA's deep expertise in HR advisory and transformation services, with the goal of helping organizations across the GCC region digitize and modernize their payroll processes. Ramco Payce, trusted by over 500 organizations worldwide, offers a robust global payroll solution that covers compliance in more than 150 countries. The platform is available both as a cloud-based solution and a managed service, and is designed to streamline payroll management with features like self-service reporting, an actionable payroll workspace, and serverless payroll capabilities. With this new partnership, businesses in the GCC can benefit from faster payroll implementations, thanks to Ramco's quick deployment toolkit, while also gaining insights and strategic guidance from MCA's advisory team. The partnership emphasizes innovation through AI, machine learning, and robotic process automation, offering clients a touchless, end-to-end payroll experience. This alliance strengthens Ramco's presence in the Middle East and highlights its commitment to helping companies in the region simplify payroll operations, ensure compliance, and improve accuracy. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
LBCI
11-06-2025
- Business
- LBCI
Waste and garbage fill up streets: Will Lebanon's tourism season be doomed?
Report by Maroun Nassif, English adaptation by Yasmine Jaroudi Many Lebanese officials previously promised to solve the waste crisis—either through sorting, landfilling and treatment, incineration, or relocation. However, it turned out to be false in the end. Ten years into the crisis, Lebanon remains threatened by a new waste crisis, which is expected to escalate in the summer of 2025. Garbage has begun accumulating in the streets of Beirut and Mount Lebanon because Ramco and City Blu companies have reduced their operational capacity to about 70%. The reason behind this shortage is that Ramco requires $18 million from the Lebanese state, and City Blu needs $19 million in overdue amounts, which have accumulated since November 2024. Finance Minister Yassine Jaber signed the draft decrees last Thursday for paying Ramco and City Blu's dues. Still, the companies' problem is that the payment mechanism could take up to two months while they desperately need liquidity and cash. In fact, the transaction could be completed in three days if properly followed up, as the Finance Minister confirmed to LBCI, but in the typical Lebanese way, it might not be completed for more than a month. Why is that? After the Interior Minister and Finance Minister sign the draft decree, it is submitted to the Prime Minister's office for signature, then to the Presidency, until the decree is issued and published in the Official Gazette. Afterward, the Finance Ministry is notified, and payment procedures begin. Upon completion of the transaction, the Banque du Liban (BDL) transfers the funds to the companies. This complex mechanism requires speed, as people's health will be at stake, and Lebanon's tourism season will be doomed.
Indian Express
05-06-2025
- Business
- Indian Express
Ramco Cements: A cyclical turnaround in the making?
Cement prices have remained flat for a decade, with South India bearing the brunt. However, with consolidation among major players and early signs of price recovery, Ramco Cements, which is trading near its 2017 peaks, could be poised for a turnaround. Owing to excess capacity, per bag prices of cement have increased by only 1.7% CAGR over the last 10 years, well below the average inflation rate over the period. Nowhere has this impact been felt more than in South India, where excess capacity has been the highest among regions. But the silver lining is that prices are expected to inch up owing to the consolidation drive by Ultratech Cement and Ambuja Cement. If there is recovery in pricing, one major player in the southern region – The Ramco Cements – could be a major beneficiary. While the stock is barely above the peak price it hit in 2017 of Rs 866 per share, there are enough reasons to dig deeper into the company. A climb and then a dip in sales and volumes From FY21 to FY24, Ramco Cements more than doubled cement volumes — from 8.3 million metric tonnes (MMT) to 18.0 MMT — driving revenue from Rs 5,303 crore to Rs 9,483 crore. However, despite surging volumes, EBITDA margins slid from ~29.8 percent in FY21 to ~15 percent in FY22 as global coal, petcoke, and diesel prices rose faster than selling prices in South India. By FY23, improving energy costs helped margins recover to around ~15 percent, and revenue climbed to Rs 8,172 crore. In FY24, volumes hit 18 MMT and revenue reached Rs 9,483 crore, with EBITDA margins at ~16 percent. Yet, in FY25, volumes plateaued near 18.2 MMT and revenue dipped 9 percent to Rs 8,554 crore, as renewed input inflation outpaced modest price hikes. Ramco's aggressive capacity additions fuelled top-line growth, but fluctuating energy costs and competitive pricing kept margins under pressure throughout FY21-25. At 14%, Ramco Cements' EBITDA margins are where they were nearly 10 years ago in 2014. With expected improvement in pricing discipline, margins should inch up from here. Profits and cash flow: Volatile but resilient While sales has been in an uptrend, owing to declining EBITDA margins (29-14%) and surging interest payments (Rs 88 crore-459 crore), profit after tax (PAT) has shrunk significantly from Rs 784 crore to Rs 270 crore (after exceptional items – other income of Rs 199 crore). But cash flows tell a different story. Cash flow from operations (CFO) remains strong. Though much of the CFO is used for debt servicing and capex, it reflects operational health. Hence, EV/EBITDA, not P/E, is a more appropriate valuation metric. Debt and interest coverage: A tight corner In a bid to maintain market share, Ramco has grown capacities aggressively, which it funded through debt. When margins were healthy, interest was a small blip (FY21, FY22). But as profitability dropped, interest coverage (EBITDA ÷ interest expense) tumbled from 14x in FY2021-22 to 3x in FY2024-25. Put simply, that means Ramco now has to spend a much larger share of its profit on interest. Management has sold non-core land assets (about Rs 455 crore realised so far, with another Rs 545 crore expected soon) to reduce debt and ease pressure. But until EBITDA climbs back up, investors must be watchful of the coverage ratio. Ramco financed its expansion with debt. As margins shrank, interest coverage dropped from 14x in FY22 to 3x in FY25 — a clear sign of stress. Understanding Ramco's business and the cement cycle How Ramco makes money: The basics Ramco sells bagged cement (OPC, blended cements) to builders, contractors, and cement distributors. It also sells ready-mix concrete and dry mortar (a small part of revenue). Its core markets are Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Odisha, and West Bengal. Ramco's advantage historically comes from: Scale & Integration: 11 plants, 22 MTPA capacity, captive limestone mines — this helps control costs. Green Power: Over 200 MW of wind farms + 43 MW waste-heat recovery — lower electricity costs. Distribution Network: 9,400+ dealers, 23,500+ sub-dealers — gets cement to tens of thousands of customers in villages, towns, and cities. Industry consolidation and competition After a slowdown in 2018-19, the Indian cement industry has seen consolidation. Giants like UltraTech and Ambuja have snapped up smaller players, especially in South India. In FY24 and FY25, Ramco had to keep plants running at high capacity to spread fixed costs, even when demand was weak. Meanwhile, pricing was lacklustre, i.e., supply outpaced demand. From FY21 through early FY2024, South Indian cement prices languished near multi-year lows. Ramco's response has been to expand in other regions, cut costs, and bank on its brand. They boosted green power use from 22% of total energy in FY22-23 to a planned 34% in FY2023-24. They built rail sidings to ditch diesel trucks. They also sold off non-core real estate to pay down debt. Demand outlook: Signs of a turnaround After years of weak pricing, South Indian cement prices finally began to stabilise in early FY25-26. Drivers included a combination of modest demand recovery (government infrastructure projects, rural housing) and relatively slower capacity additions in that region. South India cement prices had seen an uptick in April 2024, compared to April 2023, however, the price hikes did not sustain through the rest of the year. According to Nuvama Research, 'In May 2025, cement prices saw an increase across all regions, with the southern region leading the trend, followed by the eastern, central, and western markets. This price hike was mainly driven by an improvement in demand.' Given that the South Indian cement market is significantly consolidated compared to a year ago, the expectation is that these hikes will sustain themselves. And because South accounts for ~75% of Ramco's volumes, that would directly lift revenue and profitability. That's why, despite a grim FY25, FY26 could be much better. With most expansion behind them (no massive capex outlays planned beyond maintenance), Ramco can use existing capacity to serve recovering demand, so each incremental tonne sold adds right to the bottom line. A significant cost pressure has emerged with the introduction of a new Mineral Bearing Land Tax of Rs 160 per tonne of limestone in Tamil Nadu, effective from April 4, 2025. This rate is reported as the highest in India (e.g., Jharkhand levies Rs 40 per tonne). This tax is expected to increase the cost of cement production in the state by approximately Rs 200 per tonne. Given Ramco Cements' strong footprint in South India, this tax poses a direct and substantial threat to production costs and profitability. The cement industry has appealed to the Tamil Nadu government for relief. The outcome of this request will be critical — an unfavorable decision could result in a structural cost hike for Ramco. Valuation: Is Ramco a good buy now? At Rs 988 per share, Ramco's trailing P/E is roughly 85x earnings. That may sound high, but cement stocks often trade at high P/Es because profits are low. For comparison: UltraTech Cement: 54 P/E Ambuja Cements: 33 P/E Shree Cement: 94X P/E Ramco: 85X P/E Ramco's P/E at 85X reflects a cyclical trough in earnings (not a premium growth multiple). Thus P/E is usually not a great valuation metric for 'cyclical stocks'. P/B comparison: Cheaper on book value P/B is a better metric for comparing valuations for cement companies. Let's take a look : UltraTech and Shree trade at 4.5x and above Ambuja Cement trades at 2.5x book value Ramco trades at ~3.1× book value That tells us that Ramco's assets (plants, land, mines) are valued more cheaply relative to some of the larger peers. Based on its 10-year historical media value of 3.5x, Ramco trades at a reasonable discount. The bottom line: Betting on a cycle turn Ramco is a cyclical bet. You're wagering that the Indian cement cycle is on the upswing—volumes rising, prices firming, costs stabilizing. If that plays out, the stock today is a 'value' (relative to peers) at mid-teens EV/EBITDA and 2.7x P/B. But if your horizon is a few quarters, wait for clearer signals of demand and pricing. If you can hold for more than 12-18 months, Ramco's cyclical upswing could lead to far better performance by the company. Note: We have relied on data from and throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information. Rahul Rao has helped conduct financial literacy programmes for over 1,50,000 investors. He has also worked at an AIF, focusing on small and mid-cap opportunities. Disclosure: The writer or his dependents do not hold shares in the securities/stocks/bonds discussed in the article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
Mint
23-05-2025
- Business
- Mint
A catalyst for Ramco Cements stock is set to play out. But is that enough?
South India-focused The Ramco Cements Ltd had a tough March quarter (Q4FY25). Cement sales volume declined more than expected by around 4% year-on-year to 5.29 million tonnes. The region has seen an increased pace of consolidation lately, and elevated competition for market share gains has kept cement prices under pressure. In fact, according to Nomura Global Markets Research, Ramco is the only major cement producer in its coverage to report a decline in year-on-year volumes in Q4FY25; Ramco's decline was as against 5% year-on-year growth for the industry. 'Blended realization (at ₹4,522 per tonne) came in 4% below our estimate and was flat quarter-on-quarter, as against a 3% improvement quarter-on-quarter for the industry," added the Nomura report. The Ramco management said that at the start of FY26, price hikes of ₹30-35/bag in the trade segment and ₹60-70 per bag in the non-trade segment were implemented in the south. If these sustain, there is a scope of Ramco's realisations to mend. Plus, increased thrust on green energy should help the company manage operating costs better. Here, it is worth noting that the government of Tamil Nadu imposed a new levy – the mineral bearing land tax of Rs160 per tonne of limestone with effect from 4 April 2025. The management expects this to result in additional cost implication of around Rs200 per tonne of cement produced in Tamil Nadu, where Ramco has significant exposure. Cement manufacturers in Tamil Nadu, through industry association, have represented to the government seeking relief, which is under consideration, it added. Also Read: UltraTech Cement set for higher volumes, tighter grip on costs Reducing debt A company-specific monitorable for Ramco is the pace of debt reduction. It is comforting that Ramco is deleveraging by paring non-core assets. Net debt declined sequentially to ₹4,481 crore as of March 2025, aided by proceeds from the disposal of non-core assets. The company has monetized ₹460 crore so far out of its targeted ₹1,000 crore. The management said that it is on track to achieve the target of monetizing non-core assets before July as committed earlier. It expects the key net debt-to-Ebitda ratio to ease to 2.50-2.75x in FY26 from 3.51x in FY25. 'We believe that recent price hikes and ongoing balance sheet deleveraging are key near-term catalysts that could support the stocks' performance," said Motilal Oswal Financial Services Ltd report dated 23 May. However, sustained profitability, disciplined capital allocation, and meaningful market share gains will be critical structural drivers for a more durable re-rating, it added. In this calendar year so far, the Ramco shares have given mere 3% returns. While efforts to reduce debt are encouraging, Ramco's capital expenditure intensity is likely to remain elevated as it adds more capacity. In FY25 Ramco's capex stood at ₹1,024 crore and the management guided for ₹1,200 crore capex for FY26. Ramco is expanding its clinker and grinding capacity by 3.2mtpa and 1.5mtpa respectively at Kolimigundla Line 2 in Andhra Pradesh. Mtpa is million tonnes per annum. It also plans debottlenecking and adding grinding units at existing facilities with minimal capital expenditure. Ramco aims to reach its capacity target of 30 mtpa by March 2026 from 24 mtpa currently. An Antique Stock Broking report dated 23 March points out that Ramco's net debt is likely to remain greater than ₹4,000 crore over FY25–27E even after factoring in the sale of non-core assets worth ₹1,000 crore. 'The Ramco Cements currently trades at around 11.9x FY27 estimated EV/Ebitda and $105 EV/ton. The stock may continue to trade below its historical valuation given lower than historical profitability and higher leverage," added the Antique report. EV is enterprise value. Also Read | Best cement stocks 2025: Demand revival, pricing trends and growth prospects
