The company’s revenue increased by nearly 20% from last year to ₹671 crore. The topline was aided by strong price hikes undertaken in the Southern market, along with incentives.
Profitability returned to Sagar Cements in the June quarter after four consecutive quarterly losses. It reported a net profit of ₹7.5 crore, compared to a net loss of ₹32.2 crore during the same quarter last year. The return to profitability is despite a 2% increase in finance costs year-on-year.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by more than 2.5x from the year-ago quarter to ₹121.8 crore, while margins expanded to 8.4% from 5.6% last year.
Sagar Cements reported an EBITDA per tonne of ₹851, which is the highest in four years. The same figure last year stood at ₹356 and at ₹218 in the previous quarter.
Operating performance of the company remained strong despite a 10% increase in power and fuel costs from last year, and a 9% increase in other expenses.
The board of one of the company’s subsidiaries Sagar Cements (M) Pvt Ltd. has given its approval to take up the expansion of cement grinding capacity from 1 MTPA to 1.5 MTPA.
Also, a part of the green initiatives is to establish a 6 MW solar power plant involving a capex of around ₹140 crore.
Sagar Cements shares ended the previous session 0.19% up at ₹269 apiece. The stock has gained 14% in the past month.
Also Read: SBI QIP — Majority shares in ₹25,000 crore fund raise issued to LIC; check other allottees here
