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business | IST

Functioning at 60% capacity utilisation, 20% lower YoY, says Ramco Group

Under unlock India, the cement sector has been in focus and this August demand has been lower when compared to July. PR Venketrama Raja, Chairman at Ramco Group is in conversation with CNBC-TV18 to discuss the company's experience in terms of demand for cement.
Ramco Cements had a good set of numbers in Q1, on all fronts whether it be revenue, EBITDA or margins, which beat street expectations.
Speaking about demand Raja said, “We had good demand early in May and June because of the lockdown bounce back, but now we are seeing demand slowing down because of the rains and the eastern sector and all that has lots of rains. Demand is definitely muted and we expect it to be like this for the next 2-3 months.”
He added, “Post monsoon, I think whether it will normalise very much depends on how the public sector projects pick up and the government spending picks up. They have announced a lot of public sector projects and so on, if that picks up then I think we will see a good surge in demand.”
Speaking about capacity he said, “We are only at 60 percent of our capacity and we are doing about 20-25 percent less than a year ago.”
Watch the video for more.