On consolidated basis
Quarterly Result YoY
comparison
Net sales (including other operating income) of Sagar Cements has declined
8.25% to Rs 333.65 crore. Sales of Cement segment has gone down
9.03% to Rs 329.58 crore (accounting for 90.57% of total
sales). Sales of Power segment has gone up 45.38% to Rs 34.31 crore
(accounting for 9.43% of total sales). Inter-segment sales rose Rs
22.22 crore to Rs 30.24 crore.
Volumes declined by 14% YoY in Q3 resulting in decline in revenues.
Profit
before interest, tax and other unallocable items (PBIT) has slumped 71.58% to
Rs 24.25 crore. PBIT of Cement segment fell 72.45% to Rs 23.48 crore
(accounting for 96.82% of total PBIT). PBIT of Power segment rose
862.50% to Rs 0.77 crore (accounting for 3.18% of total PBIT).
PBIT
margin of Cement segment fell from 23.53% to 7.12%. PBIT margin of
Power segment rose from 0.34% to 2.24%. Overall PBIT margin fell
from 22.11% to 6.66%.
Operating profit margin has declined
from 28.71% to 13.88%, leading to 55.66% decline in operating profit to Rs
46.30 crore. Raw material cost as a % of total sales (net of stock
adjustments) increased from 15.20% to 16.49%. Purchase of finished
goods cost rose from 1.07% to 1.66%. Employee cost increased from
4.99% to 5.30%. Other expenses rose from 48.99% to 64.11%.
Power and Oil fuel cost rose from 19.24% to 35.76%.
Freight charges fell from 18.15% to 15.11%.
Inspite of increase in realizations higher input cost mainly power and fuel cost led to decline operating margins
Other
income fell 3.52% to Rs 1.92 crore. PBIDT fell 54.68% to Rs 48.22
crore. Provision for interest rose 63.06% to Rs 18.36
crore.
PBDT
fell 68.61% to Rs 29.86 crore. Provision for depreciation rose 7.47%
to Rs 21.86 crore.
Profit
before tax down 89.30% to Rs 8.00 crore. Share of profit/loss were
nil in both the periods. Provision for tax was expense of Rs 3.38
crore, compared to Rs 25.21 crore. Effective tax rate was 42.25%
compared to 33.70%.
Minority interest decreased 787.50%
to Rs -0.71 crore. Net profit attributable to owners of the company
decreased 89.27% to Rs 5.33 crore.
Promoters’
stake was 50.28% as of 31 December 2021 ,compared to 50.26% as of 31 December
2020 . Promoters pledged stake was 10.91% as of 31 December 2021
Year-to-date (YTD)
results analysis
Net sales (including other operating
income) of Sagar Cements has increased 14.84% to Rs 1095.15
crore. Sales of Cement segment has gone up 14.55% to Rs 1,090.00
crore (accounting for 92.18% of total sales). Sales of Power segment
has gone up 50.80% to Rs 92.53 crore (accounting for 7.82% of total
sales). Inter-segment sales rose Rs 59.21 crore to Rs 87.38
crore.
Profit before interest, tax and
other unallocable items (PBIT) has slumped 35.73% to Rs 154.32
crore. PBIT of Cement segment fell 36.17% to Rs 153.58 crore
(accounting for 99.52% of total PBIT). PBIT of Power reported profit
of Rs 0.74 crore compared to loss of Rs 0.51 crore.
PBIT margin of Cement segment fell
from 25.29% to 14.09%. PBIT margin of Power segment rose from
negative 0.83% to 0.80%. Overall PBIT margin fell from 23.71% to
13.05%.
Operating profit margin has declined
from 31.06% to 19.56%, leading to 27.68% decline in operating profit to Rs
214.19 crore. Raw material cost as a % of total sales (net of stock
adjustments) increased from 13.88% to 16.44%. Purchase of finished
goods cost fell from 1.77% to 1.20%. Employee cost decreased from
5.68% to 5.09%. Other expenses rose from 46.93% to 58.77%.
Power and Oil fuel cost rose from 18.54% to 29.81%.
Freight charges fell from 16.76% to 16.50%.
Other income rose 52.39% to Rs 9.25
crore. PBIDT fell 26.08% to Rs 223.44 crore. Provision
for interest rose 26.96% to Rs 45.35 crore.
PBDT fell 33.18% to Rs 178.09
crore. Provision for depreciation rose 1.11% to Rs 61.2
crore.
Profit before tax down 43.26% to Rs
116.89 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 41.42 crore, compared
to Rs 70.25 crore. Effective tax rate was 35.44% compared to 34.10%.
Minority interest decreased 661.29%
to Rs -2.36 crore. Net profit attributable to owners of the company
decreased 42.80% to Rs 77.83 crore.
Promoters’ stake was 50.28% as of 31
December 2021 ,compared to 50.26% as of 31 December 2020 . Promoters
pledged stake was 10.91% as of 31 December 2021
Management Commentary
Commenting
on the performance Mr Sreekanth Reddy, Jt Managing Director of the company
said, “Our performance during the quarter was largely on expected lines
given the external challenges which impacted demand and pricing sentiment.
Unseasonal rains, sand unavailability in the east and labour unavailability due
to festive season resulted in lower off take. Prices as well remained benign on
the back of lower demand. However, we did witness gradual pick-up in demand and
prices towards the end of the quarter, which portends well for the coming
quarters.
The
other positive development is the commissioning of Jajpur plant, which coupled
with Sagar Cements (M) Pvt. Ltd.,(Jeerabad plant) would, help us in
diversifying our sales outside our existing markets. We are hopeful of
attaining utilization of 60%-65% and 75% respectively for these plants by next
year.
Operating
profitability and margins remain under pressure owing to lower realizations and
stubborn input prices. Elevated levels of diesel, pet-coke and international
coal prices resulted in higher production and transportation costs during the
quarter compared with previous year. We have however been able to soften the
overall impact of higher raw material prices owing to our prudent procuring
strategy and cost rationalization measures. As indicated earlier, we have been
working towards increasing the share of domestic coal to help contain power
& fuel expenses.
Another
noteworthy development has been that the Bayyavaram Unit was Awarded with
“National Energy Conservation Award, Cement Sector -2021”, in appreciation of
the achievements in energy conversation in the cement sector for the year 2021
by Government of India, Ministry of Power.
Going
ahead, we believe the commissioning of the new units, cost rationalization
measures and better geographic footprint position us well to deliver growth and
create value for our shareholders. Furthermore, the improving cash flow profile
of the business over the ensuing years would help us remain on track towards
achieving our objective of attaining 10 mln tonnes capacity by 2025.”
| Sagar Cements : Consolidated Results | | | Quarter ended | Year to Date | Year ended |
|---|
| Particulars | 202112 | 202012 | Var.(%) | 202112 | 202012 | Var.(%) | 202103 | 202003 | Var.(%) |
|---|
| Net Sales (including other operating income) | 333.65 | 363.67 | -8.25 | 1,095.15 | 953.67 | 14.84 | 1,371.32 | 1,175.15 | 16.69 | | OPM (%) | 13.88 | 28.71 | -1,483 bps | 19.56 | 31.06 | -1,150 bps | 29.20 | 15.79 | 1,342 bps | | OP | 46.30 | 104.41 | -55.66 | 214.19 | 296.19 | -27.68 | 400.44 | 185.50 | 115.87 | | Other Inc. | 1.92 | 1.99 | -3.52 | 9.25 | 6.07 | 52.39 | 7.78 | 4.03 | 93.05 | | PBIDT | 48.22 | 106.40 | -54.68 | 223.44 | 302.26 | -26.08 | 408.22 | 189.53 | 115.39 | | Interest | 18.36 | 11.26 | 63.06 | 45.35 | 35.72 | 26.96 | 46.56 | 60.99 | -23.66 | | PBDT | 29.86 | 95.14 | -68.61 | 178.09 | 266.54 | -33.18 | 361.66 | 128.54 | 181.36 | | Depreciation | 21.86 | 20.34 | 7.47 | 61.2 | 60.53 | 1.11 | 80.55 | 78.87 | 2.13 | | PBT | 8.00 | 74.80 | -89.30 | 116.89 | 206.01 | -43.26 | 281.11 | 49.67 | 465.96 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 8 | 74.8 | -89.30 | 116.89 | 206.01 | -43.26 | 281.11 | 49.67 | 465.96 | | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 8 | 74.8 | -89.30 | 116.89 | 206.01 | -43.26 | 281.11 | 49.67 | 465.96 | | Taxation | 3.38 | 25.21 | -86.59 | 41.42 | 70.25 | -41.04 | 95.51 | 23.14 | 312.75 | | PAT | 4.62 | 49.59 | -90.68 | 75.47 | 135.76 | -44.41 | 185.6 | 26.53 | 599.59 | | Minority Interest (MI) | -0.71 | -0.08 | -787.50 | -2.36 | -0.31 | -661.29 | -0.42 | -0.18 | -133.33 | | Net profit | 5.33 | 49.67 | -89.27 | 77.83 | 136.07 | -42.80 | 186.02 | 26.71 | 596.44 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 5.33 | 49.67 | -89.27 | 77.83 | 136.07 | -42.80 | 186.02 | 26.71 | 596.44 | | EPS (Rs)* | 0.45 | 4.23 | -89.27 | 6.62 | 11.58 | -42.80 | 15.83 | 2.27 | 596.44 | | | * EPS is on current equity of Rs 23.50 crore, Face value of Rs 2, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
|
| Sagar Cements : Consolidated Segment Results | | | Quarter ended | Year to Date | Year ended |
|---|
| % of (Total) | 202112 | 202012 | Var.(%) | % of (Total) | 202112 | 202012 | Var.(%) | % of (Total) | 202103 | 202003 | Var.(%) |
|---|
| Sales | | Cement | 90.57 | 329.58 | 362.29 | -9.03 | 92.18 | 1,090.00 | 951.52 | 14.55 | 93.92 | 1,368.12 | 1,173.64 | 16.57 | | Power | 9.43 | 34.31 | 23.60 | 45.38 | 7.82 | 92.53 | 61.36 | 50.80 | 6.08 | 88.61 | 87.01 | 1.84 | | Total Reported Sales | 100.00 | 363.89 | 385.89 | -5.70 | 100.00 | 1,182.53 | 1,012.88 | 16.75 | 100.00 | 1,456.73 | 1,260.65 | 15.55 | | Less: Inter segment revenues | | 30.24 | 22.22 | 36.09 | | 87.38 | 59.21 | 47.58 | | 85.41 | 85.50 | -0.11 | | Net Sales | 100.00 | 333.65 | 363.67 | -8.25 | 100.00 | 1,095.15 | 953.67 | 14.84 | 100.00 | 1,371.32 | 1,175.15 | 16.69 | | PBIT | | Cement | 96.82 | 23.48 | 85.24 | -72.45 | 99.52 | 153.58 | 240.62 | -36.17 | 100.19 | 325.00 | 110.72 | 193.53 | | Power | 3.18 | 0.77 | 0.08 | 862.50 | 0.48 | 0.74 | -0.51 | LP | -0.19 | -0.61 | -1.45 | 57.93 | | Total PBIT | 100.00 | 24.25 | 85.32 | -71.58 | 100.00 | 154.32 | 240.11 | -35.73 | 100.00 | 324.39 | 109.27 | 196.87 | | Less : Interest | | 18.36 | 11.26 | 63.06 | | 45.35 | 35.72 | 26.96 | | 46.56 | 60.99 | -23.66 | | Add: Other un-allcoable | | 2.11 | 0.74 | 185.14 | | 7.92 | 1.62 | 388.89 | | 3.28 | 1.39 | 135.97 | | PBIT Margin(%) | | Cement | | 7.12 | 23.53 | -1,640.39 | | 14.09 | 25.29 | -1,119.81 | | 23.76 | 9.43 | 1,432.13 | | Power | | 2.24 | 0.34 | 190.53 | | 0.80 | -0.83 | 163.09 | | -0.69 | -1.67 | 97.81 | | PBT | 100.00 | 8.00 | 74.80 | -89.30 | 100.00 | 116.89 | 206.01 | -43.26 | 100.00 | 281.11 | 49.67 | 465.96 |
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