Ramky Infrastructure Sees Sharp Drop in Q1 Earnings

Hyderabad: Ramky Infrastructure Limited has reported a significant decline in its consolidated profit after tax (PAT) for the first quarter of fiscal year 2025, ending June 30, 2024. The company’s PAT dropped by 32% to approximately Rs71 crore, compared to Rs105 crore recorded in the same period last year. This decline comes despite a modest 2% increase in revenue from operations, which rose to Rs569 crore in Q1FY25 from Rs557 crore in Q1FY24.

The company’s revenue performance reflects a slight improvement year-on-year, with revenue from operations increasing to Rs569.1 crore from Rs556.7 crore. However, this growth was overshadowed by the sharp decline in PAT, highlighting challenges in maintaining profitability despite rising revenues.

Ramky Group’s Chief Financial Officer attributed the financial downturn to seasonal economic headwinds and the impact of a one-time gain recognised in the previous fiscal year. In a statement, the CFO emphasised that the company’s fiscal discipline and strategic foresight had enabled it to sustain growth trajectories. “Our performance in Q1FY25 underscores our commitment to maintaining a robust capital structure and enhancing shareholder value, even as we navigate through economic uncertainties,” the CFO remarked. The company continues to focus on its core areas, including industrial infrastructure development and engineering, procurement, and construction (EPC) projects. Ramky Infrastructure has been actively involved in projects related to water and wastewater treatment, as well as urban infrastructure development.

The significant drop in PAT highlights the pressure on Ramky Infrastructure to optimise operational efficiencies and manage costs effectively. As the company moves forward, it remains committed to leveraging its strategic capabilities to drive sustainable growth and improve financial performance, despite the challenging economic landscape.