Ramco Cements' Strategic Asset Disposal: A Path to Debt Reduction

The Ramco Cements disposed of assets worth Rs 455.03 crore in FY25, focusing on reducing debt by monetizing non-core assets. The sale includes Rs 376 crore from shares in other companies and Rs 79.03 crore from land sales, against a target of Rs 1,000 crore.

The Ramco Cements has strategically disposed of assets valued at Rs 455.03 crore during FY25, as part of its plan to monetize non-core assets for debt repayment, aiming for a total target of Rs 1,000 crore. This reflects the company's proactive approach to managing its financial obligations.

The company reported a gain of Rs 376 crore from selling shares in other companies and an additional Rs 79.03 crore from land sales, according to a regulatory filing. In November of the previous year, Ramco announced its intent to offload non-core assets valued at about Rs 1,000 crore, using the proceeds to reduce debt levels.

With a net debt totalling Rs 4,616 crore as of December 31, 2024, Ramco Cements has demonstrated progress by cutting debt by Rs 487 crore in Q3FY25. Operating from Chennai, the company boasts five integrated cement units and six grinding units across several Indian states, with a total manufacturing capacity of 24 million tonnes per annum. Currently, Ramco's shares are trading at Rs 897.95 on the BSE, a slight dip of 0.03 per cent.

(With inputs from agencies.)