Conference Call with Sagar Cements Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Cement & cement products company Sagar Cements announced Q1FY25 results: Revenue increased by 4% YoY and volume increased by 9% in Q1FY25. Plants operated at around 49% during the current quarter. Operating EBITDA of 4,670 lakh for Q1FY25 as against Rs 3,050 lakh during Q1FY24. Operating EBITDA of Rs 356 per ton during Q1FY25. EBITDA margin stood at 8% in Q1FY25 v/s 6% in Q1FY24). Loss after tax stood at Rs 3,220 lakh for Q1FY25 v/s loss of Rs 4,228 lakh during Q1FY24 . Commenting on the Performance, Sreekanth Reddy, Jt. Managing Director, said: "Our results are largely on expected lines given the soft demand and benign prices which prevailed during the quarter. Volume offtake trended lower amidst intense heat wave, labor unavailability and slowdown in construction activities because of general elections. While certain pockets did witness pick up in demand during the later part of the quarter, on an overall basis it was largely subdued. In line with demand and owing to heightened competitive intensity, prices as well were relatively weak across regions which in turn impacted our topline for the quarter. EBITDA for the quarter stood at Rs 47 crore, with margins of 8%. EBITDA/ton stood at Rs 356. We remain committed to lowering costs and further solidifying our position as one of the lowest-cost cement producers in the country/industry. With improvement in operational efficiencies across our units and higher share of renewable energy in the mix, we expect our profitability and margins to improve in coming years. Expansion plan at Dachepalli unit of Andhra Cements Ltd. is progressing as per schedule, and we believe we will be able to achieve volumes of 6.50 MnT during FY25. The Board has accorded its approval for setting up 6 MW Solar Power Plants each, at its Gudipadu and Dachepalli units which is in line with our stated ESG objectives. To conclude, we believe our enhanced capacities positions us well to capture the growing infrastructure and real estate demand over the coming years. Furthermore, our efforts towards diversifying revenues streams and increasing our regional footprint should help us in improving the overall profitability profile of the company." Result PDF
Sagar Cements announced consolidated Q4FY24 results: Revenue increased by 14% YoY and volume increased by 19% for Q4FY24. Plants operated at around 60% during the current quarter. Operating EBITDA of Rs 6,813 lakhs for Q4FY24 as against Rs 3,886 lakhs during Q4FY23. Operating EBITDA of Rs 422 per ton during Q4FY24. EBITDA margin increased by 400 bps to 10% for Q4FY24 (v/s Q4FY23). Profit after tax stood at Rs 1,158 lakhs for Q4FY24 v/s Profit of Rs 8,793 lakhs during Q4FY23. Result PDF