Cement & Cement Products company Sagar Cements announced Q4FY23 & FY23 results: Revenue increased by 24% YoY and volume increased by 20% for Q4FY23 Plants operated at around 65% during Q4FY23 Operating EBITDA of Rs 3,886 lakh for Q4FY23 as against Rs 6,109 lakh during Q4FY22 Operating EBITDA of Rs 286 per ton during Q4FY23 EBITDA margin declined by 600 bps to 6% for Q4FY23 (v/s Q4FY22) Other Income includes an amount of Rs 168 crore on redemption of Non-Convertible Debentures held by the subsidiary Profit/(Loss) after tax stood at Rs 9,798 lakh for Q4FY23 v/s PAT of Rs (1,915) lakh during Q4FY22 The Board at its meeting held today has recommended for approval of the shareholders a dividend at Rs 0.70 per equity share of Rs 2 each (35%) on the 13,07,07,548 equity shares of the company. Commenting on the performance, Sreekanth Reddy, Jt. Managing Director of the company said, “We have ended FY23 on a positive note with strong volume growth and moderating raw material prices. Furthermore, the year also marks the milestone of us achieving 10 MnT capacity following the acquisition of Andhra Cements. This acquisition helps us further solidify our position in our core markets and helps us better serve our customers in a cost-effective way. For the quarter, good demand from infrastructure projects and the IHB segment helped sustain high volumes. The volumes would have been even higher but for labour unavailability due to the festive season and unseasonal rains during the end of Q4. Input prices i.e. coal and pet coke as well moderated during the quarter. A benign pricing environment negated the dual benefit of high operating leverage and lower raw material prices. Our efforts toward cost rationalization and efficiency optimization helped us limit the overall impact of the soft pricing environment. Some of our key initiatives in recent years towards containing cost includes building railway sidings, captive power plant, and waste heat recovery system. We are hopeful of seeing the full benefits from these over the coming years. Our efforts are now primarily directed toward ramping up the utilization levels of the recently acquired assets. These assets not only offer us the requisite scale but also help us diversify our geographic and product mix. Over the coming years, as we ramp up the operations and utilization levels across units, we expect significant improvement in the operating and profitability profile of the company. To conclude, our efforts towards cost rationalization, better product mix, and presence across established and faster-growing regions position us well to create value for our stakeholders.” Result PDF