Ramky Infrastructure came out with their Q3 numbers, sales were up 6.5 percent. At an earnings before interest, taxes, depreciation and amortisation (EBITDA) level it was a slightly lower performance of 11 percent fall to Rs 124 crore.
The key point impacting the margins is the interest cost, which started to go up significantly. There was also about 100-150 bps increase in the direct cost as a percentage of revenues.
M Goutham Reddy
Ramky Infrastructure posted a lower net profit of Rs 23.26 crore for the third quarter ended December 31, against Rs 53.16 crore for the corresponding period last year.
The Hyderabad-based infrastructure and construction company posted consolidated revenue of Rs 1,025.34 crore (Rs 963.16 crore).
In addition to interest cost, Reddy said, there was about 100-150 bps increase in the direct cost that is the raw material cost as a percentage of revenue. This impacted the company’s overall profitability
Talking about order inflow, he said, the pace is slow and there is no incremental addition in terms of closing order book. However, he was quick to add that the order book was "adequate" at Rs 12,400 crore.
Moreover, Reddy was not worried on account of revenues. "We are primarily working on sustainability of profitability, which has been declining. It has to be augmented either by equity infusion or by way of reducing direct and indirect cost," he told the channel.
Set email alert for
ADS BY GOOGLE
video of the day
Govt paper a near term headwind; like cyclicals: ICICI Pru