Sagar Cements (502090) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 was marked by a 19% year-over-year revenue decline to ₹475 crore, with sales volume down 12% to 1.16 MnT, driven by extended monsoons, sluggish project execution, and competitive pricing.

• Operating EBITDA for Q2 FY25 dropped 67% year-over-year to ₹19.93 crore, with margin compressing to 4% from 10% in Q2 FY24.

• Loss after tax widened to ₹56.98 crore in Q2 FY25 from ₹10.85 crore in Q2 FY24.

• Plants operated at around 43% utilization during the quarter amid subdued demand and intense pricing competition.

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

Financial highlights

• Q2 revenue was INR 475 crore, down 19% year-over-year from INR 587 crore in Q2 FY24; H1 FY25 revenue fell 8% year-over-year.

• EBITDA for the quarter was INR 20 crore, compared to INR 60 crore in Q2 FY24; margin dropped to 4% from 10%.

• EBITDA per ton was INR 172, down from INR 459 in Q2 FY24.

• Loss after tax stood at INR 57 crore, compared to a loss of INR 11 crore in Q2 FY24.

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

• Net realization per ton in Q2 FY25 was ₹4,093, down 8% year-over-year; operating expenditure per ton was ₹4,012, down 2%.

• EPS (not annualized) for Q2 FY25 was -₹4.36, compared to -₹0.83 in Q2 FY24.

• 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.

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

• Margin and profitability improvements anticipated in coming years through increased renewables, efficiency, and utilization.