Kathmandu: Riddhisiddhi Cement, a joint venture between the Shankar Group and the Ambe Group, reported a total turnover of approximately Rs 3.89 billion during the first nine months of the current fiscal year. This follows a period of steady financial activity for the company, which recorded revenues of Rs 5.98 billion in 2025, Rs 5.81 billion in 2024, Rs 5.46 billion in 2023, and Rs 6.48 billion in 2022.
While the company has maintained a strong market presence, its operating profit declined slightly in the last fiscal year. The operating profit dropped to Rs 1.25 billion from the Rs 1.45 billion recorded in 2024. Consequently, the profit margin narrowed from 25 per cent to 20.9 per cent, primarily due to rising raw material costs and increased sales-related expenses during the period.
Despite the dip in operating margins, the company’s net profit showed a significant upward trend. Net profit doubled from Rs 41 million in 2024 to Rs 82 million in the last fiscal year. Additionally, the company’s total cash reserves improved, growing from Rs 446 million in 2024 to Rs 499 million. In the first nine months of the current fiscal year alone, the company has generated an operating profit of Rs 738 million and a net profit of Rs 20 million, with current cash reserves standing at Rs 313 million.
The company’s debt profile has remained relatively stable, with total debt moving from Rs 10.98 billion in 2024 to Rs 10.83 billion in the last fiscal year. Although the overall gearing ratio was recorded at 3.80 times, the ratio of total external liabilities to tangible net worth improved, dropping from 4.44 to 3.23 times. This improvement is credited to an infusion of equity that strengthened the company’s net worth. Furthermore, the debt service coverage ratio rose to 1.46 times, and the interest coverage ratio increased to 1.44 times, signalling an improved capacity to handle financial obligations.
In the first nine months of the current fiscal year, the company’s total debt rose to Rs 11.26 billion, driven by an increase in working capital needs. During this period, the overall gearing ratio stood at 2.89 times, while the interest coverage ratio saw further improvement, reaching 1.50 times. These figures reflect the company’s ongoing efforts to balance its operational expansion with its financial health.
Established in 2013, Riddhisiddhi Cement is a major producer of both clinker and finished cement. The company operates a facility with an annual grinding capacity of 700,000 metric tons and a clinker production capacity of 800,000 metric tons. It produces both OPC and PPC cement, which are marketed under the well-known “Riddhisiddhi” and “Makwanpur” brand names.
Currently, Sulav Agrawal holds a majority ownership stake of 51.79 per cent in the company. To support its financial operations, the company recently sought credit ratings for loans totalling Rs 12.21 billion. This includes a rating for Rs 8.14 billion in long-term debt and Rs 4.06 billion in short-term credit facilities, highlighting the scale of its industrial operations.
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