Conference Call with Sagar Cements Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.
Cement & Cement products company Sagar Cements announced Q3FY24 results: Revenue increased by 16% YoY to Rs 66,941 lakhs and volume increased by 14% to 14,07,167 MT for Q3FY24. Plants operated at around 55% during the current quarter. Operating EBITDA of Rs 8,706 lakhs for Q3FY24 as against Rs 4,758 lakhs during Q3FY23. Operating EBITDA of Rs 619 per ton during Q3FY24. EBITDA margin increased by 500 bps to 13% for Q3FY24 (v/s Q3FY23). Loss after tax stood at Rs 1,018 lakhs for Q3FY24 v/s Loss of Rs 2,368 lakhs during Q3FY23. Commenting on the performance, Sreekanth Reddy, Jt. Managing Director of the Company said, “We had a good quarter marked by healthy volumes and steady realisations. Although overall volumes were affected by state elections and labor shortages during the festive season, we witnessed a 14% growth in volumes during Q3FY24 when compared with Q3FY23. Additionally, favorable prices prevailed in our key markets, leading to a 16% increase in revenue for the quarter. As far as EBITDA and margins are concerned, we observed a significant enhancement on a per-ton basis, consistent with our earlier projections. The combination of increased operating leverage and consistent realizations contributed to improved profitability for the quarter. We anticipate this positive trend to persist in the future, supported in part by higher utilization levels of recently acquired units and strategic initiatives aimed at promoting the use of green power, and alternative fuels, as well as the deployment of electric trucks and wheel loaders. Operationally, we believe we are on track towards meeting our guidance of attaining 5.6 MnT volumes for the fiscal. Performance and capex plans of our recently acquired unit, Andhra Cements is progressing as per plan. To conclude, our widespread geographical footprint, advancing product mix, and increased emphasis on elevating the proportion of green fuel in the overall energy mix, collectively position us favorably to generate value for our shareholders.” Result PDF