Sagar Cements (502090) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue declined 16% year-over-year to ₹564 crore, with sales volume down 2% to 1.38 MnT; 9M FY25 revenue fell 11% year-over-year to ₹1,600 crore, with sales volume down 2% to 3.82 MnT.

• Q3 FY25 consolidated EBITDA dropped 57% year-over-year to ₹3,764 lakh, with EBITDA margin at 7% (down 600 bps); loss after tax widened to ₹5,445 lakh from ₹1,050 lakh in Q3 FY24.

• Plants operated at 53% utilization in Q3 FY25; management expects FY25 sales volumes to match FY24 at 5.5 MnT.

• Early signs of industry recovery emerged in Q3 FY25, with demand picking up after a slow start due to festive season and labor unavailability; rural demand improved with better agricultural output and construction activity.

• Standalone and consolidated unaudited financial results for Q3 and nine months ended December 31, 2024, were approved by the Board and reviewed by auditors with an unmodified conclusion.

Financial highlights

• Q3 FY25 revenue was INR 564 crore, down 16% year-over-year from INR 669 crore in Q3 FY24; consolidated Q3 revenue from operations was ₹56,388 lakhs, with a net loss of ₹5,468 lakhs.

• EBITDA for the quarter was INR 38 crore, compared to INR 87 crore in Q3 FY24; margin declined to 7% from 13%.

• EBITDA per ton stood at INR 273; loss after tax was INR 54 crore.

• Power and fuel costs dropped to INR 1,456 per ton from INR 1,701 per ton year-over-year; freight costs also declined.

• Cash and bank balances were INR 159 crore as of December 31, 2024.

Outlook and guidance

• FY25 sales volume is expected to match FY24 at around 5.5 million tons; FY26 guidance is 6.4–6.5 million tons.

• EBITDA per ton is expected to improve with higher utilization, cost savings, and operational leverage; internal target for FY26 is 500+ per ton.

• Management expects benefits from softening raw material prices to reflect in future quarters.

• Q4 and early Q1 are expected to see continued strong demand, with price increases likely only after early Q1.

• The company received in-principle approvals for a rights issue by subsidiary Andhra Cements Limited, aiming to raise up to ₹18,000 lakhs.