Sagar Cements is a south based cement player with cement capacity of 8.25 MT. Region wise, AP/Telangana accounted for ~60% of sales followed by Tamil Nadu (16%), Karnataka (9%).
Going forward, the company will be developing a presence in the faster-growing eastern and central market with recent commissioning of new 2.5 MT capacity
Self-reliance in power (61.5 MW), ability to switch between coal and petcoke for fuel requirement and split grinding units near market gives it cost advantage
Q3FY23 Results:
Q3 performance broadly remained in line with our estimates.
Revenues were up 72.6% YoY to ₹ 575.7 crore, led by sales volume growth of 66.8% YoY
EBITDA improved sequentially with major delta coming from declining power & fuel costs
At the PAT level, the company reported a net loss of ₹ 27.2 crore led by higher interest cost (pertaining to loan taken for potential M&A) and depreciation (due to commissioning of new capacities)
Cement & cement products company Sagar Cements announced Q1FY25 results:
Revenue increased by 4% YoY and volume increased by 9% in Q1FY25.
Plants operated at around 49% during the current quarter.
Operating EBITDA of 4,670 lakh for Q1FY25 as against Rs 3,050 lakh during Q1FY24.
Operating EBITDA of Rs 356 per ton during Q1FY25.
EBITDA margin stood at 8% in Q1FY25 v/s 6% in Q1FY24).
Loss after tax stood at Rs 3,220 lakh for Q1FY25 v/s loss of Rs 4,228 lakh during Q1FY24 .
Commenting on the Performance, Sreekanth Reddy, Jt. Managing Director, said: "Our results are largely on expected lines given the soft demand and benign prices which prevailed during the quarter. Volume offtake trended lower amidst intense heat wave, labor unavailability and slowdown in construction activities because of general elections. While certain pockets did witness pick up in demand during the later part of the quarter, on an overall basis it was largely subdued. In line with demand and owing to heightened competitive intensity, prices as well were relatively weak across regions which in turn impacted our topline for the quarter.
EBITDA for the quarter stood at Rs 47 crore, with margins of 8%. EBITDA/ton stood at Rs 356. We remain committed to lowering costs and further solidifying our position as one of the lowest-cost cement producers in the country/industry. With improvement in operational efficiencies across our units and higher share of renewable energy in the mix, we expect our profitability and margins to improve in coming years.
Expansion plan at Dachepalli unit of Andhra Cements Ltd. is progressing as per schedule, and we believe we will be able to achieve volumes of 6.50 MnT during FY25.
The Board has accorded its approval for setting up 6 MW Solar Power Plants each, at its Gudipadu and Dachepalli units which is in line with our stated ESG objectives.
To conclude, we believe our enhanced capacities positions us well to capture the growing infrastructure and real estate demand over the coming years. Furthermore, our efforts towards diversifying revenues streams and increasing our regional footprint should help us in improving the overall profitability profile of the company."
Sagar Cements Ltd was incorporated on January 15th, 1981. The Company is engaged in the business of manufacture and sale of cement. 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 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.
During 2009-10, the Company had set up two mini hydel power projects. The Company and Parficim S.A.S., a wholly owned subsidiary of Vicat S.A. of France jointly promoted Vicat Sagar Cement Pvt Ltd to set up a 5.5 mtpa cement plant along with a captive power unit of 60MW capacity in Gulbarga Dist. of Karanataka State. In 2012-13, a separate entity under the name `Vicat Sagar Cement Private Limited` (VSCPL) was later formed for the purpose. This project was implemented in two phases, each phase with a capacity of 2.75 Milllion ton cement per annum. To facilitate the speedy implementation of the captive power plant mentioned above, the VSCPL and Parficim SAS, a wholly owned subsidiary of Vicat SA jointly formed an SPV, "Gulbarga Power Private Ltd". First Phase of the cement project commenced its commercial operations. Resulting to this formation, Sagar Cements and the Vicat Group respectively invested a sum of Rs.86 Crores and Rs. 414 Crores and were holding 47% and 53% of the Equity Capital of the said Joint Venture.
In 2015, the Company acquired the entire equity stake in BMM Cements Limited, which was renamed as Sagar Cements (R) Limited. It commissioned a Waste Heat Recovery Power Plant of 6 MW at Mattampally unit in 2017. It acquired a grinding unit of 1,81,500 MT capacity at Bayyavaram in Visakhapatnam Dist in Andhra Pradesh which ramped its capacity from 0.18 MTPA to 1.5 MTPA in 2018-19.
In 2019, the Company acquired 65% stake in Satguru Cement, MP and 100% stake in Jajpur Cement, Odisha.
Sagar Cements (R) Limited, a Wholly-owned Subsidiary was merged with Company through the the Scheme of Amalgamation effective from 15th March 2022. In 2022, it commissioned 1 MTPA integrated plant at Jeerabad, MP and 1.5 MTPA grinding unit at Jajpur, Odisha, resulting to this, the Jaipur Cement Plant started their commercial operations in Odisha during the year 2021-22.
The Company acquired 95% stake in Andhra Cements Limited (ACL) through a Insolvency and Bankruptcy Code Process in March, 2023, by virtue of which, the said ACL became subsidiary of the Company. The Dachepalli unit resumed its grinding operations post the above acquisition.
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Sagar Cements Ltd was incorporated on January 15th, 1981. The Company is engaged in the business of manufacture and sale of cement. 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 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.
During 2009-10, the Company had set up two mini hydel power projects. The Company and Parficim S.A.S., a wholly owned subsidiary of Vicat S.A. of France jointly promoted Vicat Sagar Cement Pvt Ltd to set up a 5.5 mtpa cement plant along with a captive power unit of 60MW capacity in Gulbarga Dist. of Karanataka State. In 2012-13, a separate entity under the name `Vicat Sagar Cement Private Limited` (VSCPL) was later formed for the purpose. This project was implemented in two phases, each phase with a capacity of 2.75 Milllion ton cement per annum. To facilitate the speedy implementation of the captive power plant mentioned above, the VSCPL and Parficim SAS, a wholly owned subsidiary of Vicat SA jointly formed an SPV, "Gulbarga Power Private Ltd". First Phase of the cement project commenced its commercial operations. Resulting to this formation, Sagar Cements and the Vicat Group respectively invested a sum of Rs.86 Crores and Rs. 414 Crores and were holding 47% and 53% of the Equity Capital of the said Joint Venture.
In 2015, the Company acquired the entire equity stake in BMM Cements Limited, which was renamed as Sagar Cements (R) Limited. It commissioned a Waste Heat Recovery Power Plant of 6 MW at Mattampally unit in 2017. It acquired a grinding unit of 1,81,500 MT capacity at Bayyavaram in Visakhapatnam Dist in Andhra Pradesh which ramped its capacity from 0.18 MTPA to 1.5 MTPA in 2018-19.
In 2019, the Company acquired 65% stake in Satguru Cement, MP and 100% stake in Jajpur Cement, Odisha.
Sagar Cements (R) Limited, a Wholly-owned Subsidiary was merged with Company through the the Scheme of Amalgamation effective from 15th March 2022. In 2022, it commissioned 1 MTPA integrated plant at Jeerabad, MP and 1.5 MTPA grinding unit at Jajpur, Odisha, resulting to this, the Jaipur Cement Plant started their commercial operations in Odisha during the year 2021-22.
The Company acquired 95% stake in Andhra Cements Limited (ACL) through a Insolvency and Bankruptcy Code Process in March, 2023, by virtue of which, the said ACL became subsidiary of the Company. The Dachepalli unit resumed its grinding operations post the above acquisition.
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Sagar Cements share price as on 27 Jul 2024 is Rs. 238.3. Over the past 6 months, the Sagar Cements share price has decreased by 11.51% and in the last one year, it has increased by 16.33%. The 52-week low for Sagar Cements share price was Rs. 190.35 and 52-week high was Rs. 305.
You can buy Sagar Cements Ltd shares through a brokerage firm. ICICIdirect is a registered broker through which you can place orders to buy Sagar Cements Ltd Share.
Company share prices and volatile and keep changing according to the market conditions. As of Jul 26, 2024 03:53 PM the closing price of Sagar Cements Ltd was Rs.238.30.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of Jul 26, 2024 03:53 PM, the market cap of Sagar Cements Ltd stood at Rs. 3,114.77 Cr.