Sagar Cements (502090) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw muted demand and realizations due to heat waves, labor shortages, and election-related construction slowdown, but revenue grew 4% year-over-year to ₹561 crore, with sales volume up 9% to 1.28 MnT.

• EBITDA rose to ₹47 crore from ₹31 crore in Q1 FY24, with margin improving to 8% from 6%; EBITDA per ton increased to ₹356.

• Loss after tax narrowed to ₹32 crore from ₹42 crore in Q1 FY24, reflecting improved operational efficiency and cost control.

• Expansion at Dachepalli and other units is progressing as scheduled, with targeted volume of 6.5 MnT for FY25 and significant green power investments.

• The merger of Jajpur Cements and acquisition of Andhra Cements were completed, with a capital gain recognized from the OFS.

Financial highlights

• Revenue for Q1 FY25 was ₹561 crore, up 4% year-over-year; total income rose 5% to ₹568.9 crore.

• EBITDA margin improved to 8% from 6% in Q1 FY24; standalone EBITDA per ton increased 51% year-over-year to ₹393.

• Loss after tax narrowed to ₹32 crore from ₹42 crore in Q1 FY24; EPS improved to ₹(2.46) from ₹(3.23).

• Power and fuel cost per ton reduced to ₹1,470 from ₹1,732 year-over-year; freight cost per ton also declined.

• Finance costs increased 6% year-over-year to ₹46.4 crore; depreciation rose 13% to ₹56.2 crore.

Outlook and guidance

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

• FY25 EBITDA expected in the range of ₹350–375 crore, translating to ₹550–575 per ton.

• Dachepalli expansion to raise clinker and cement capacity by FY26; targeted capex of ₹470 crore for this project.

• Realizations expected to remain stable until mid-Q3, with a potential ₹10–15 per bag price increase in the second half.

• Andhra Cements expected to reach breakeven by Q1 FY26.