Monetising Non-Core Assets to Cut Debt
Chennai-based The Ramco Cements has disposed of non-core assets worth ₹455.03 crore in the fiscal year 2025, as part of its broader strategy to monetise assets and reduce its debt burden. This figure stands notably lower than the company's initial target of approximately ₹1,000 crore.
According to a recent regulatory filing, the asset sale includes gains of ₹376 crore from selling shares held in other companies and ₹79.03 crore from the sale of land holdings.
Asset Disposal Strategy Announced Earlier
In November 2024, The Ramco Cements had outlined plans to dispose of non-essential assets, aiming to raise around ₹1,000 crore. The primary goal behind this initiative was to use the proceeds for paring down its outstanding debts.
Significant Debt Reduction in Q3FY25
As of December 31, 2024, the company's net debt stood at ₹4,616 crore. During the third quarter of FY25 alone, Ramco Cements successfully reduced its debt by ₹487 crore, reflecting a clear execution of its financial strategies.
Extensive Manufacturing Operations
Ramco Cements operates five integrated cement plants strategically located across Tamil Nadu and Andhra Pradesh. Additionally, it manages six grinding units situated in Tamil Nadu, Karnataka, West Bengal, Odisha, and Andhra Pradesh. Collectively, these facilities have a total production capacity of 24 million tonnes per annum (MTPA).
Ramco Cements Share Price Performance
Following the announcement, shares of Ramco Cements traded marginally lower at ₹897.95, down by 0.03% on the Bombay Stock Exchange (BSE).
