Sagar Cements (502090) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw a 19% year-over-year revenue decline, with sales volume down 12% and plants operating at 43% utilization, driven by extended monsoons, sluggish project execution, and competitive pricing.

• EBITDA margin compressed to 4% in Q2 FY25 from 13% in Q2 FY24, with EBITDA per ton at ₹172.

• Loss after tax widened to ₹5,698 lakhs in Q2 FY25 from ₹1,085 lakhs in Q2 FY24.

• Management remains optimistic about medium to long-term prospects, citing robust housing, infrastructure initiatives, and focus on green energy.

• Un-audited standalone and consolidated financial results for Q2 and H1 FY2024-25 were approved by the Board on October 23, 2024, after Audit Committee review.

Financial highlights

• Q2 FY25 consolidated revenue was ₹47,512 lakhs (INR 475 crore), down 19% YoY; H1 FY25 revenue was ₹1,03,572 lakhs, down 8% YoY.

• Q2 FY25 EBITDA was ₹1,993 lakhs (INR 20 crore), margin dropped to 4% from 10–13% YoY; EBITDA per ton was ₹172, down from ₹459 in Q2 FY24.

• Q2 FY25 loss after tax was ₹5,698 lakhs (INR 57 crore), compared to a loss of ₹1,085 lakhs (INR 11 crore) in Q2 FY24.

• Power and fuel cost per ton decreased to INR 1,446 from INR 1,626 YoY; freight cost per ton also declined slightly.

• Received INR 23 crore incentive for MP in Q2, booked on receipt basis.

Outlook and guidance

• FY25 volume guidance is 5.75 million tons, with expectations of improved demand post-Diwali and into Q4.

• FY26 volume target is 6.5–6.75 million tons, assuming supportive weather and market conditions.

• Management anticipates margin and profitability improvements through increased green energy usage and plant upgrades.

• Q3 volume expected at 1.75–1.8 million tons; H2 demand expected to pick up, especially from November.

• Cost reduction benefits from lower fuel procurement expected in Q4.