Sagar Cements

Sagar Cement hit a record high on the back of its turnaround Q4Fy15 performance. The company reported a net sales of Rs.191 crore, up 30% (YoY) while EBITDA turned around from a loss of Rs.5 crore to a whopping profit of Rs.41 crore.  EBITDA Margins improved to 21.80% and PAT was at Rs.22 crore v/s loss of Rs.11 crore in Q4Fy14. The plant operated at around 70.84% capacity. Approximately 71% of cement dispatches was to various markets outside Andhra Pradesh & Telangana .

There was a 5% rise in cement sales at 478,000MT with net realization increasing by 22%, up from Rs.3270/MT to Rs.3994/MT. Gross debt as on 31st March 2015 stood at Rs. 21574 lakh out of which Rs. 14456 lakh is long term debt with the remaining constituting working capital. Cash stood at a very healthy Rs.196 crore.

The company ended FY15 with a 18% rise in net sales at Rs.576 crore and net profit was at Rs.297 crore of which Rs.280 crore came in via sale of investments. For the entire year as such, the plant operated at around 57.5% capacity, which clearly means that it was Q4 which was the clincher.

Sagar Cements Group’ total cement capacity has gone up to 3.75 million tpa from existing 2.75 million tpa and it is expecting completion of BMM acquisition by end of June 2015. Currently, the company is buying the cement from BMM and selling as traded cement.

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