Q2FY23 Quarterly Result Announced for Sagar Cements Ltd.
Sagar Cements announced Q2FY23 results: Revenue increased by 29% YoY and volume increased by 21% for Q2FY23. Plants operated around 49% during the current quarter. Operating EBITDA of Rs 571 lakhs for Q2 FY23 as against Rs 6,082 lakhs during Q2FY22. Operating EBITDA of Rs 55 per ton during Q2FY23. EBITDA margin declined by 1,500 bps to 1% for Q2 FY23 (v/s Q2 FY22). (Loss)/ Profit after tax stood at Rs (4,919) lakhs for Q2 FY23 v/s PAT of Rs 1,994 lakhs during Q2 FY22. Commenting on the performance, Mr. Sreekanth Reddy, Jt. Managing Director of the Company said, “Our performance for the quarter was expectedly benign given the seasonality and challenging external environment. While volumes and realisations were relatively stable, profitability and margins were impacted by higher input costs. Demand for large part of the quarter was impacted by strong monsoons. However we did witness some revival towards the end following pick up in infrastructure activities as the rains subsided. Segments such as low-cost housing and infrastructure have been well supported by the Government. Higher volume growth during the quarter is also partly on account of commissioning of new facilities. With regard to realisations, prices in the trade segment have been relatively stable compared to non-trade segment. Despite higher volumes, we have seen compression of profitability and margins largely owing to higher input prices. Furthermore, despite elevated raw material prices, soft demand trends across markets restricted our ability to undertake price revision, in turn squeezing our margins. Also, negative operating leverage amidst lower utilization levels across units dented profitability further. However, we have started witnessing some moderation in input prices in recent times and with demand likely to pick up in the second half of the fiscal we expect some improvement in profitability going forward. Another noteworthy development has been that the Bayyavaram Unit was Awarded with “National Energy Conservation Award, Cement Sector -2022”, in appreciation of the achievements in energy conversation in the cement sector for the year 2022 by Government of India, Ministry of Power. Furthermore, we are also pleased to announce that we had received “Certificate of Appreciation” from Commercial Taxes Department, Government of Telangana for being tax compliant and contributing the highest revenue towards realising the dream of Bangaru Telangana. Going ahead, our diversified geographic presence, cost rationalization measures, better product mix and strong balance sheet positions us well to deliver consistent performance and create value for our shareholders.” Result PDF19-10-2022
