- 13 May 2025
- ICICIdirect Research
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SAGAR CEMENTS REVENUE DECLINED BY 7 PERCENT YOY TO RS 658 CRORES
SAGCEM - 226 Change: 0.18 (0.08 %)News: Revenue declined by 7.1% YoY to Rs 658 crores as improvement in sales volume by 4.7% YoY (to 1.69 mtpa) was offset by decline in realization by 11.3% YoY. Sequentially, revenue increased by 16.7%, as volumes grew 22.8% QoQ but realization remained declined 4.9% QoQ. EBITDA/ton declined by 48.4% YoY (-20.3% QoQ) to 218/ton, mainly on account of lower realization. Subsequently, EBITDA came at Rs 36.8 crore (-46% YoY, -2.2% QoQ). On PAT level, the company reported a loss of Rs 73.1 crore (as against net profit of Rs 11.6 crore in Q3FY24 and net loss of Rs 54.4 crore in Q3FY25), on account of exceptional loss of Rs 27.2 crore during this quarter and higher other income in Q4FY24. For FY25, revenue is down by ~10% YoY as sales volume is flat YoY and realization lower by ~9.8% YoY. EBITDA/ton stands at Rs 256/ton (vs Rs 446/ton in FY24)
View: Operational performance came below expectations, mainly on account of lower than expected realisation. However, volume growth was largely in-line with expectations. Overall capacity utilisation improved to 64% during this quarter vs (53% during Q3FY25). Moreover, management guides volume of 6-6.3mtpa for FY26E, which implies a growth of 9-14% YoY. Over the next 2-3 years, we expect gradual recovery in company’s profitability, led by capacity expansion (0.75 mtpa by FY26E end), improvement in capacity utilisation of subsidiary Andhra Cement and improvement in operational efficiencies
Impact: Neutral