Nov 28, 2022 10:10 AM
Sagar Cements announced Q2FY23 results:
Commenting on the performance, Mr. Sreekanth Reddy, Jt. Managing Director of the Company said, “Our performance for the quarter was expectedly benign given the seasonality and challenging external environment. While volumes and realisations were relatively stable, profitability and margins were impacted by higher input costs. Demand for large part of the quarter was impacted by strong monsoons. However we did witness some revival towards the end following pick up in infrastructure activities as the rains subsided. Segments such as low-cost housing and infrastructure have been well supported by the Government. Higher volume growth during the quarter is also partly on account of commissioning of new facilities. With regard to realisations, prices in the trade segment have been relatively stable compared to non-trade segment.
Despite higher volumes, we have seen compression of profitability and margins largely owing to higher input prices. Furthermore, despite elevated raw material prices, soft demand trends across markets restricted our ability to undertake price revision, in turn squeezing our margins. Also, negative operating leverage amidst lower utilization levels across units dented profitability further. However, we have started witnessing some moderation in input prices in recent times and with demand likely to pick up in the second half of the fiscal we expect some improvement in profitability going forward.
Another noteworthy development has been that the Bayyavaram Unit was Awarded with “National Energy Conservation Award, Cement Sector -2022”, in appreciation of the achievements in energy conversation in the cement sector for the year 2022 by Government of India, Ministry of Power. Furthermore, we are also pleased to announce that we had received “Certificate of Appreciation” from Commercial Taxes Department, Government of Telangana for being tax compliant and contributing the highest revenue towards realising the dream of Bangaru Telangana.
Going ahead, our diversified geographic presence, cost rationalization measures, better product mix and strong balance sheet positions us well to deliver consistent performance and create value for our shareholders.”
|Jun 22, 2022||Dividend||35|
|Aug 17, 2021||Split||1:5|
|Jul 16, 2021||Dividend||25|
A mini-cement company, commencing operations in 1985 to manufacture clinker and ordinary portland cement (OPC), Sagar Cements has adopted the world`s latest and widely accepted dry processing kiln technology. It has also commissioned an electrostatic precipitator system for environment protection and pollution control. The OPC, sulphate resisting cement (SRC) and IRS T-40 grade cement manufactured by the company are marketed under the Sagar Priya brand. SRC conforming to IS-12330 standards is used in coastal areas, harbours, dockyards, bridges, sewerages and effluent-carrying drains. The slag cement grinding unit set up by it in 1993 consists of slag dryer, cement mill and packing plant. Slag cement is more resistant than OPC to soil and water containing excessive amounts of sulphates of alkali metals, alumina and iron, as well as acidic waters. It can, therefore, be used in marine works and in coastal areas. The clinker unit was expanded to increase productivity. It obtained government approval to set up mini-hydel power projects on GBC canal and KC canal through a new company, Sagar Power. The entire power generated by this unit will be used by Sagar Cements. In 1996 the company installed a second mill of 20 tph at the Mattampally unit at a capital outlay of about Rs. 250 lacs. the company had set up two mini hydel power projects.
Plot No 111 Road No 10, Jubilee Hills, Hyderabad, Telangana, 500033
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|Face Value Equity Shares||:||2|
|Market Lot Equity Shares||:||1|
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