Cement & Cement Products company Sagar Cements announced Q3FY25 results Revenue decreased by 16% YoY and volume decreased by 2% for Q3FY25. Plants operated at around 53% during the current quarter. Operating EBITDA of Rs 3,764 lakhs for Q3FY25 as against Rs 8,706 lakhs during Q3FY24. Operating EBITDA of Rs 273 per ton during Q3FY25. EBITDA margin decreased by 600 bps to 7% for Q3FY25 (v/s Q3FY24). Loss after tax stood at Rs 5,445 lakhs for Q3FY25 v/s Loss of Rs 1,050 lakhs during Q3FY24. Sreekanth Reddy Jt. Managing Director commented: “Q3 performance benefitted in part from the pick-up in demand during the second half of the quarter and steady realisations. While the quarter began on a soft note owing to festive season and labour unavailability, construction activities picked up pace during the second half. Demand from rural segment also revived steadily aided by better agricultural output. EBITDA for the quarter stood at Rs. 38 crore, with margins of 7%. EBITDA/ton stood at Rs. 273. While input prices remained largely steady compared to previous quarter, we expect the benefit of softening raw material prices to reflect in our financials from next quarter. Moreover, our initiatives to enhance the energy mix by increasing the proportion of green power, improving operational efficiencies, and achieving higher utilization rates across our facilities will contribute to profitability and margin growth in the years ahead. For the full year FY25 we believe we will be able to achieve sales volumes similar to FY24 of 5.50 MnT. During January 2025 the Company has successfully commissioned 6 MW Solar Power plant at its Gudipadu Unit. Further the Company has received approvals for implementation of 6 MW Solar Power plant at its Dachepalli unit. To conclude, we believe that our initiatives to lower freight costs—through shortening lead distances, decreasing the clinker factor, upgrading our assets, and optimizing our energy mix will effectively generate long-term value for our shareholders.” Result PDF
Cement & Cement Products company Sagar Cements announced Q2FY25 results Revenue decreased by 19% YoY and volume decreased by 12% for Q2FY25. Plants operated at around 43% during the current quarter. Operating EBITDA of Rs 1,993 lakh for Q2FY25 as against Rs 6,022 lakh during Q2FY24. Operating EBITDA of Rs 172 per ton during Q2FY25. EBITDA margin decreased by 600 bps to 4% for Q2FY25 (v/s Q2FY24). Loss after tax stood at Rs 5,698 lakh for Q2FY25 v/s Loss of Rs 1,085 lakh during Q2FY24. Sreekanth Reddy, Jt. Managing Director, Sagar Cements, said: Our quarterly results depict the difficult industry landscape we are currently navigating. Demand remained subdued owing to extended monsoon season and sluggish project completions, which in turn impacted the overall volume growth during the quarter. Moreover, intense competition in pricing within our primary markets contributed to reduced profitability. EBITDA for the quarter stood at Rs. 20 crore, with margins of 4%. EBITDA/ton stood at Rs. 172. While input prices remained relatively stable, lower revenues and utilization levels led to margin compression. Despite existing challenges related to demand and pricing, we are steadfast in our commitment to long-term objectives of cost reduction and operational enhancements. Anticipated improvements in the business's margin profile and profitability in the upcoming years are expected to stem from an enhanced energy mix—increased reliance on renewables— and improved efficiencies and utilization rates across our facilities. For the full year we believe we will be able to achieve volumes of 5.75 million tonnes during FY25. To conclude, we are confident that enhanced cost efficiency achieved through minimizing lead distances, enhancing green energy usage, reducing clinker factors, and upgrading our ACL plant will position us favorably to enhance customer service, thereby creating significant value for our shareholders. Result PDF