Ramco Industries Secures Credit Rating Reaffirmation from ICRA, Partially Withdraws NCD Facility

Ramco Industries Limited , a prominent player in the building materials sector, has received a vote of confidence from ICRA, one of India's leading credit rating agencies. ICRA has reaffirmed the company's credit ratings for its long-term and short-term facilities, while also making adjustments to its Non-Convertible Debenture (NCD) facility.

Credit Rating Reaffirmation

ICRA has reaffirmed Ramco Industries' credit ratings for its long-term and short-term facilities totaling Rs. 500 crores. The ratings are as follows:

Facility Type	Amount (Rs. Crores)	Rating
Long-term facilities	-	ICRA [AA-] (Stable)
Short-term facilities	-	ICRA [A1+]
Total facilities	500.00	-

These ratings indicate a high degree of safety regarding timely servicing of financial obligations and very low credit risk.

NCD Facility Adjustment

In addition to the reaffirmation of its credit facilities, ICRA has made the following changes to Ramco Industries' NCD facility:

Action	Amount (Rs. Crores)
Reaffirmed	100.00
Withdrawn	60.00
Previous Total	160.00
Current Total	100.00

The partial withdrawal of the NCD facility could indicate a strategic financial decision by the company, possibly aimed at optimizing its debt structure or reducing financing costs.

Financial Position

To provide context for these ratings, let's look at some key financial metrics from Ramco Industries' latest balance sheet:

Metric	Amount (Rs. Crores)	Year-on-Year Change
Total Assets	1,760.00	7.25%
Total Equity	1,254.40	6.64%
Current Assets	673.40	4.60%
Current Liabilities	372.20	-6.13%
Investments	537.50	21.91%

The company's financial position shows growth in total assets and equity, along with a significant increase in investments. The reduction in current liabilities coupled with an increase in current assets suggests improved liquidity.

Implications and Outlook

The reaffirmation of Ramco Industries' credit ratings by ICRA is a positive signal to investors and stakeholders. It reflects the company's strong financial health, stable business operations, and ability to meet its financial obligations. The high short-term rating (A1+) indicates a strong degree of safety regarding timely payment of financial obligations.

While the partial withdrawal of the NCD facility might raise questions, it should be viewed in the context of the company's overall financial strategy. The strong balance sheet position, with growing assets and investments, suggests that this move is likely part of a broader financial management approach rather than a sign of financial stress.

Investors and stakeholders should continue to monitor Ramco Industries' financial performance and strategic decisions in the coming quarters to gauge the impact of these rating actions on the company's future growth and stability.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.04%	-2.26%	-10.36%	+14.34%	+0.46%	+44.69%

Ramco Industries Limited , a leading player in the building materials sector, has reported a robust financial performance for the second quarter of fiscal year 2025-26, alongside announcing plans for expansion.

Financial Highlights

The company's consolidated net profit for Q2 FY2025-26 surged to ₹203.6 million, marking a significant 55% increase from ₹131.5 million in the same period last year. This impressive growth was accompanied by a 3.7% year-over-year rise in revenue, which reached ₹3.66 billion compared to ₹3.53 billion in Q2 FY2024-25.

Ramco Industries also demonstrated strong operational efficiency, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) climbing to ₹523.5 million from ₹414.9 million in the corresponding quarter. The EBITDA margin expanded notably to 14.32% from 11.75% year-over-year, indicating improved profitability.

Financial Metric	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Net Profit	₹203.6 Cr	₹131.5 Cr	+55%
Revenue	₹3660.0 Cr	₹3530.0 Cr	+3.7%
EBITDA	₹523.5 Cr	₹414.9 Cr	+26.2%
EBITDA Margin	14.32%	11.75%	+257 bps

Expansion Plans

In a strategic move to capitalize on market demand, Ramco Industries has announced plans to set up a new manufacturing facility. The Board of Directors has approved the establishment of a Fibre Cement Board plant in Maksi, Madhya Pradesh. The new facility will have an installed capacity of 58,000 M.T. per annum and is expected to be completed within 12 months.

The project, with an estimated cost of ₹180 crore, will be financed through a combination of term loans (₹135 crore) and internal accruals. This expansion aligns with the company's growth strategy and its response to the increasing demand for fibre cement boards in the construction industry.

Market Outlook

The company's decision to invest in new capacity suggests confidence in the future demand for building materials. This expansion could potentially strengthen Ramco Industries' market position and contribute to long-term growth.

As the construction sector continues to evolve with a focus on sustainable and durable materials, Ramco Industries' investment in fibre cement board production may be well-timed to meet changing market preferences.

The company's improved financial performance and strategic expansion plans indicate a positive outlook for Ramco Industries in the coming quarters, subject to overall economic conditions and sector-specific trends.