Sagar cement’s margins contract sharply during Q2FY22 on higher fuel prices.SAGCEM - 269 Change: -0.40 (-0.15 %)
News: Sagar cement saw a margin contraction of 1568bps YoY, 1081bps QoQ to 16.5% during Q2FY22. Revenues increase 13.2% YoY to Rs.368.9 crore. PAT remains lower 58.6% YoY to Rs.20.8 crore (vs I-direct est: Rs.35.3 crore).
Views: While revenues broadly reflect the general slowdown in the demand due to monsoon impact, sharp contraction to the tune of over 1000bps YoY came in as a negative surprise due to sharp jump of over 55% in the power & fuel costs on YoY basis.