Q2FY22 Quarterly Result Announced for Sagar Cements Ltd.
Q2 & H1 FY22 Consolidated Financial Results: Volume growth of 18% and Revenue growth of 13% Y-o-Y for Q2 FY22. Plants operated around 59% during the current quarter. Operating EBITDA of Rs. 6,078 lakhs for Q2 FY22 as against Rs.10,477 lakhs during Q2FY21; declined by 42% Operating EBITDA of Rs. 712 per ton during Q2 FY22 against Rs. 1,451 per ton during Q2FY21. EBITDA margin declined by (1,600) bps to 16% for Q2 FY22 (v/s Q2 FY21) On October 27, 2021, Satguru Cement Private Limited, (subsidiary of the Company) has commenced the clinkerization process at its newly implemented integrated cement plant of 1 MTPA capacity in Madhya Pradesh (As informed earlier cement grinding & dispatches commenced from August 15, 2021) Jajpur Cements Private Limited, Odisha (capacity: 1.5 MTPA) will commence the operations by middle of December, 2021. Commenting on the performance, Mr. Sreekanth Reddy, Jt. Managing Director of the Company said, “We are pleased with our performance for the quarter, wherein we delivered a healthy topline growth of 13% over previous year. Strong underlying demand especially in housing and infrastructure segments helped sustain the volume momentum. Realizations too were largely steady owing to the pick-up in demand. Operating margins were expectedly under pressure owing to rising input prices. We have seen a sharp surge in coal, coke and diesel prices during the quarter resulting in lower profitability. Company took up annual maintenance for all its plants during the current quarter resulting in additional expenditure for the quarter and Company has also given the increments to all its employees including contract labour w.e.f. April 01, 2021 during the quarter. However, we have been able to soften the overall impact of the rising raw material prices owing to our prudent procuring and cost containing measures. A judicious mix of domestic coal and positive operating leverage helped us deliver 16% margins during the quarter. We are hopeful that resumption of commercial and economic activities following the decline in the covid cases and conclusion of monsoon season, will result in a better pricing environment for the business. Another positive development was that, On October 27, 2021, Satguru Cement Private Limited, (subsidiary of the Company) has commenced the clinkerization process at its newly implemented integrated cement plant of 1 MTPA capacity in Madhya Pradesh (As informed earlier cement grinding & dispatches commenced from August 15, 2021). This along with Odisha project which is expected to be commissioned by middle of December 2021, will not only help us improve our volume growth during H2 FY22 but will also help us in rationalizing our freight expenses and diversifying our sales outside our existing markets. Going ahead, we believe our cost rationalization measures, scale and better geographic mix will help us deliver steady growth over the coming years and create significant value for our stakeholders. Keeping these parameters in mind, we remain constructively positive of achieving our target of having a capacity of 10 mln tonnes by 2025.” Result PDF28-10-2021