Q1FY24 Quarterly Result Announced for Sagar Cements Ltd.
Sagar Cements announced Q1FY24 results: Revenue decreased by 3% YoY and volume decreased by 1% for Q1FY24. Plants operated at around 47% during Q1FY24. Operating EBITDA of Rs 3,048 lakh for Q1FY24 as against Rs 6,103 lakh during Q1FY23. Operating EBITDA of Rs 258 per ton during Q1FY24. EBITDA margin declined by 500 bps to 6% for Q1FY24 (v/s Q1FY23). Loss after tax stood at Rs 4,223 lakh for Q1FY24 v/s Loss of Rs 1,310 lakh during Q1FY23. Commenting on the performance, Sreekanth Reddy, Jt. Managing Director of the Company said, “We would like to highlight that Q1 performance was largely impacted owing to the maintenance shutdown undertaken for Matampally’s line II clinker production. That coupled with a competitive pricing environment across our key markets weighed in on our quarterly performance. Realisations have remained relatively stable as compared to the sequential quarter. Demand from both infrastructure and housing segments continued to witness good momentum aiding in healthy volume growth across regions. Incremental volume growth was visible in the newly commissioned plants. We have seen a decline in our operating profitability by 50% during the quarter in part owing to a benign pricing environment and also largely owing to high-cost inventory on the books. We expect the margins to benefit from falling fuel prices in the coming quarters. In addition to moderating input prices, higher utilization levels and regional diversification should help us deliver better profitability. Although, the overall advantage may be restricted, due to the overall benign pricing environment. During Q1FY24 the blended cement sales improved to 55% as against 50% reported during Q1 FY23. In terms of operations, as mentioned earlier, our efforts are directed towards improving the overall efficiencies and ramping up the utilization levels of our recently acquired units. Our Jeerabad and Jajpur facilities are performing in line with our expectations and we believe we will be able to achieve 80% utilization levels for the former and EBITDA breakeven for Jajpur during this fiscal. On the ESG front, the company has acquired electric trucks & electric wheel loaders to be used in the operation at plants. Also, Company has started growing Bio-mass to use as alternate fuel in the kilns. To conclude, we believe our geographic and product mix, cost economics, and commitment towards improving operational efficiencies will position us well to create value for our shareholders.” Result PDF27-07-2023