Sagar Cements (502090) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw soft demand and weak pricing due to heat waves, labor shortages, and election-related construction slowdown, with plants operating at 49% capacity utilization.

• Revenue for Q1 FY25 grew 4% year-over-year to ₹561 crore (₹56,060 lakh), with sales volume up 9% to 1.28 million tons.

• EBITDA increased 53% year-over-year to ₹47 crore (₹4,670 lakh), margin improved to 8% from 6%.

• Loss after tax narrowed to ₹3,220 lakh from ₹4,228 lakh in Q1 FY24.

• Expansion and ESG initiatives are progressing, with new solar power plants and capacity increases planned.

Financial highlights

• Revenue for Q1 FY25 was INR 561 crore, up 4% year-over-year; consolidated revenue from operations was ₹56,060 lakh.

• EBITDA margin improved to 8% from 6% year-over-year; EBITDA per ton increased to INR 356.

• Loss after tax narrowed to INR 32 crore (₹3,220 lakh) from INR 42 crore (₹4,228 lakh) in Q1 FY24.

• Power and fuel cost per ton reduced to INR 1,470 from INR 1,732; freight cost per ton at INR 844 vs INR 862.

• EPS (not annualized) improved to ₹(2.46) from ₹(3.23) year-over-year.

Outlook and guidance

• Full-year volume guidance maintained at 6.5 million tons, excluding clinker sales.

• Full-year EBITDA guidance is INR 350–375 crore, translating to INR 550–575 per ton.

• Management expects improvement in demand and pricing from the second half of the year, with realizations expected to remain flat until mid-Q3 and a potential INR 10–15 per bag price increase in H2.

• Fuel costs expected to remain stable for the year, with two-thirds of requirements already hedged.

• Board and Audit Committee have reviewed and approved the unaudited results, with auditors issuing an unmodified review conclusion.