Sagar Cements Announced Q1FY23 Result :
- Revenue increased by 42% YoY and volume increased by 35% for Q1 FY23.
- Plants operated around 57% during the current quarter.
- Operating EBITDA of Rs 6,103 lakhs for Q1 FY23 as against Rs 10,711 lakhs during Q1FY22.
- Operating EBITDA of Rs 514 per ton during Q1 FY23.
- EBITDA margin declined by 1,600 bps to 11% for Q1 FY23 (v/s Q1 FY22).
- (Loss)/ Profit after tax stood at Rs. (1,310) lakhs for Q1 FY23 v/s PAT of Rs 4,858 lakhs during Q1 FY22.
- 18% YoY increase in volumes during Q1 FY23.
- Op. EBITDA of Rs 6,863 lakhs during Q1 FY23 lower by 36% on a YoY basis.
- Op. EBITDA of Rs 659 per ton during Q1 FY23 lower by 46% on a YoY basis.
Commenting on the performance, Mr. Sreekanth Reddy, Jt. Managing Director of the Company said, “We have expectedly had a soft start to the fiscal given the challenges surrounding inflationary environment. Volumes growth is high at 35% consequent to the commencement of our operations at Jajpur and Jeerabad. However overall realisations remained steady amidst a benign demand scenario. Besides elevated input prices, challenges surrounding heat wave and labour availability weighed in on demand. Higher volume growth was in part owing to the commissioning of new facilities and also owing to low base effect.
Operational profitability and margins for the quarter remained under pressure owing to higher input prices. We have seen a material surge across commodity prices over the past few months, resulting in a significant increase in the cost of manufacturing and distribution. While we did undertake some price revisions, benign demand environment restricted our ability to implement requisite price hikes leading to lower profitability during the quarter. Input prices though have started to cool off from their recent highs and we are hopeful that the trend will continue which should aid our profitability going forward.
Going ahead, we believe our diversified geographic presence, improved product mix, cost rationalization measures and plans towards scaling up the business inorganically, positions us well to deliver consistent performance and create value for our shareholders.”