On consolidated basis
Quarter ended September 2022
compared with Quarter ended September 2021.
Net sales (including other operating income) of Sagar Cements has increased 28.63%
to Rs 474.55 crore. Sales of Cement segment has gone up 28.62% to Rs
473.37 crore (accounting for 90.98% of total sales). Sales of Power
segment has gone up 56.92% to Rs 46.95 crore (accounting for 9.02% of total
sales). Inter-segment sales rose Rs 29.03 crore to Rs 45.77
crore.
PBIT of Cement reported loss of Rs
31.72 crore compared to profit of Rs 40.52 crore. PBIT of Power
segment rose 77.78% to Rs -0.02 crore (accounting for 0.06% of total
PBIT).
PBIT margin of Cement segment fell
from 11.01% to 6.70%. PBIT margin of Power segment rose from
negative 0.30% to negative 0.04%. Overall PBIT margin fell from
10.16% to -6.10%.
Operating profit margin has declined
from 16.47% to 1.20%, leading to 90.61% decline in operating profit to Rs 5.71
crore. Purchase of finished goods cost rose from 1.10% to 1.39%.
Employee cost decreased from 5.35% to 4.65%. Other
expenses rose from 60.53% to 75.91%. Power and Oil fuel cost rose
from 29.71% to 46.14%. Freight charges fell from 17.97% to 16.74%.
Other income rose 480.93% to Rs
14.93 crore. PBIDT fell 67.42% to Rs 20.64
crore. Provision for interest rose 340.19% to Rs 50.27
crore. Loan funds rose to Rs 1,489.99 crore as of 30 September 2022
from Rs 919.43 crore as of 30 September 2021. Inventories rose to Rs
264.09 crore as of 30 September 2022 from Rs 160.91 crore as of 30 September
2021. Sundry debtors were higher at Rs 205.84 crore as of 30
September 2022 compared to Rs 169.31 crore as of 30 September
2021. Cash and bank balance rose to Rs 308.49 crore as of 30
September 2022 from Rs 128.11 crore as of 30 September 2021.
PBDT stood at Rs 29.63 crore
compared to profit of Rs 25.39 crore. Provision for depreciation
rose 90.32% to Rs 37.93 crore. Fixed assets increased to Rs 2,108.39
crore as of 30 September 2022 from Rs 2,034.09 crore as of 30 September
2021. Intangible assets stood at Rs 41.62 crore.
Profit before tax reported loss of
Rs 67.56 crore compared to profit of Rs 32.00 crore. Share of
profit/loss were nil in both the periods. Provision for tax was
credit of Rs 18.37 crore, compared to debit of Rs 11.24
crore. Effective tax rate was 27.19% compared to 35.13%.
Minority interest decreased
2,138.71% to Rs -6.94 crore.
Equity capital increased from Rs
23.50 crore as of 30 September 2021 to Rs 26.14 crore as of 30 September
2022. Per share face Value remained same at Rs 2.00.
Promoters’ stake was 45.20% as of 30
September 2022 ,compared to 50.28% as of 30 September 2021
. Promoters pledged stake was 84.79% as of 30 September 2022
For year-to-date (YTD) results
analysis.
Net sales (including other operating income) of Sagar Cements has increased
35.56% to Rs 1032.27 crore. Sales of Cement segment has gone up
34.98% to Rs 1,026.42 crore (accounting for 92.20% of total sales). Sales
of Power segment has gone up 49.09% to Rs 86.80 crore (accounting for 7.80% of
total sales). Inter-segment sales rose Rs 57.14 crore to Rs 80.95
crore.
PBIT of Cement reported loss of Rs
7.70 crore compared to profit of Rs 130.16 crore. PBIT of Power
reported profit of Rs 0.46 crore compared to loss of Rs 0.03 crore.
PBIT margin of Cement segment fell
from 17.12% to 0.75%. PBIT margin of Power segment rose from
negative 0.05% to 0.53%. Overall PBIT margin fell from 15.90% to
-0.65%.
Operating profit margin has declined
from 22.05% to 6.47%, leading to 60.25% decline in operating profit to Rs 66.74
crore. Raw material cost as a % of total sales (net of stock
adjustments) decreased from 16.41% to 16.10%. Purchase of finished
goods cost rose from 0.98% to 1.43%. Employee cost decreased from
4.99% to 4.63%. Other expenses rose from 56.25% to 71.45%.
Power and Oil fuel cost rose from 26.99% to 42.36%.
Freight charges fell from 17.16% to 16.98%.
Other income rose 273.40% to Rs 27.37
crore. PBIDT fell 46.29% to Rs 94.11 crore. Provision for
interest rose 264.39% to Rs 98.35 crore. Loan funds rose to Rs
1,489.99 crore as of 30 September 2022 from Rs 919.43 crore as of 30 September
2021. Inventories rose to Rs 264.09 crore as of 30 September 2022
from Rs 160.91 crore as of 30 September 2021. Sundry debtors were
higher at Rs 205.84 crore as of 30 September 2022 compared to Rs 169.31 crore
as of 30 September 2021. Cash and bank balance rose to Rs 308.49
crore as of 30 September 2022 from Rs 128.11 crore as of 30 September
2021.
PBDT stood at Rs 4.24 crore compared
to profit of Rs 148.23 crore. Provision for depreciation rose 89.40%
to Rs 74.51 crore. Fixed assets increased to Rs 2,108.39 crore as of
30 September 2022 from Rs 2,034.09 crore as of 30 September
2021. Intangible assets stood at Rs 41.62 crore.
Profit before tax reported loss of
Rs 78.75 crore compared to profit of Rs 108.89 crore. Share of
profit/loss were nil in both the periods. Provision for tax was
credit of Rs 16.46 crore, compared to debit of Rs 38.04
crore. Effective tax rate was 20.90% compared to 34.93%.
Minority interest decreased 676.97%
to Rs -12.82 crore.
Equity capital increased from Rs
23.50 crore as of 30 September 2021 to Rs 26.14 crore as of 30 September
2022. Per share face Value remained same at Rs 2.00.
Promoters’ stake was 45.20% as of 30
September 2022 ,compared to 50.28% as of 30 September 2021
. Promoters pledged stake was 84.79% as of 30 September 2022
Cash flow from operating activities
has turned negative Rs 10.68 crore for YTD ended September 2022 from positive
Rs 20.42 crore for YTD ended September 2021. Cash flow used in
acquiring fixed assets during the YTD ended September 2022 stood at Rs 63.27
crore, compared to Rs 226.06 crore during the YTD ended September
2021.
Full year results analysis.
Net sales (including other operating income) of Sagar Cements has increased
16.45% to Rs 1596.87 crore. Sales of Cement segment has gone up
16.20% to Rs 1,589.76 crore (accounting for 92.36% of total
sales). Sales of Power segment has gone up 48.32% to Rs 131.43 crore
(accounting for 7.64% of total sales). Inter-segment sales rose Rs
85.41 crore to Rs 124.32 crore.
Profit before interest, tax and
other unallocable items (PBIT) has slumped 42.99% to Rs 184.66
crore. PBIT of Cement segment fell 43.27% to Rs 184.27 crore
(accounting for 99.79% of total PBIT). PBIT of Power reported profit
of Rs 0.39 crore compared to loss of Rs 0.89 crore.
PBIT margin of Cement segment fell
from 23.74% to 11.59%. PBIT margin of Power segment rose from
negative 1.00% to 0.30%. Overall PBIT margin fell from 22.24% to
10.73%.
Operating profit margin has declined
from 29.20% to 17.27%, leading to 31.13% decline in operating profit to Rs
275.77 crore. Raw material cost as a % of total sales (net of stock
adjustments) increased from 14.61% to 15.50%. Purchase of finished
goods cost fell from 1.50% to 1.16%. Employee cost decreased from
5.66% to 5.20%. Other expenses rose from 48.54% to 61.38%.
Power and Oil fuel cost rose from 19.38% to 31.34%.
Freight charges fell from 17.36% to 16.93%.
Other income rose 72.49% to Rs 13.42
crore. PBIDT fell 29.16% to Rs 289.19 crore. Provision
for interest rose 98.63% to Rs 92.48 crore. Loan funds rose to Rs
1,508.24 crore as of 31 March 2022 from Rs 808.83 crore as of 31 March
2021. Inventories rose to Rs 208.57 crore as of 31 March 2022 from
Rs 124.28 crore as of 31 March 2021. Sundry debtors were higher at
Rs 120.31 crore as of 31 March 2022 compared to Rs 100.71 crore as of 31 March
2021. Cash and bank balance declined from Rs 254.19 crore as of 31
March 2021 to Rs 162.69 crore as of 31 March 2022.
PBDT fell 45.61% to Rs 196.71
crore. Provision for depreciation rose 14.41% to Rs 92.71 crore. Fixed
assets increased to Rs 2,106.96 crore as of 31 March 2022 from Rs 1,777.32
crore as of 31 March 2021. Intangible assets stood at Rs 41.62
crore.
Profit before tax down 62.94% to Rs
104.00 crore. Share of profit/loss were nil in both the periods. Provision
for tax was expense of Rs 44.85 crore, compared to Rs 94.51
crore. Effective tax rate was 43.13% compared to 33.68%.
Minority interest decreased
2,280.95% to Rs -10.00 crore. Net profit attributable to owners of
the company decreased 62.93% to Rs 69.15 crore.
Equity capital stood at Rs 23.50
crore as of 31 March 2022 to Rs 23.50 crore as of 31 March 2021. Per
share face Value remained same at Rs 2.00.
Promoters’ stake was 50.28% as of 31
March 2022 ,compared to 50.28% as of 31 March 2021 . Promoters
pledged stake was 10.91% as of 31 March 2022
Cash flow from operating activities
decreased to Rs 86.98 crore for year ended March 2022 from Rs 376.52 crore for
year ended March 2021. Cash flow used in acquiring fixed assets
during the year ended March 2022 stood at Rs 360.98 crore, compared to Rs
460.59 crore during the year ended March 2021.
Management Commentary
Commenting
on the performance Mr Sreekanth Reddy, Jt Managing Director of the company
said, “Our performance for the quarter was
expectedly benign given the seasonality and challenging external environment.
While volumes and realisations were relatively stable, profitability and
margins were impacted by higher input costs. Demand for large part of the
quarter was impacted by strong monsoons. However we did witness some revival
towards the end such as low-cost housing
and infrastructure have been well supported by the Government. Higher volume
growth during the quarter is also partly on account of commissioning of new
facilities. With regard to realisations, prices in the trade segment have been
relatively stable compared to non-trade segment.
Despite higher
volumes, we have seen compression of profitability and margins largely owing to
higher input prices. Furthermore, despite elevated raw material prices, soft
demand trends across markets restricted our ability to undertake price
revision, in turn squeezing our margins. Also, negative operating leverage
amidst lower utilization levels across units dented profitability further. However,
we have started witnessing some moderation in input prices in recent times and
with demand likely to pick up in the second half of the fiscal we expect some
improvement in profitability going forward.
Another noteworthy
development has been that the Bayyavaram Unit was Awarded with “National Energy
Conservation Award, Cement Sector -2022”, in appreciation of the achievements
in energy conversation in the cement sector for the year 2022 by Government of
India, Ministry of Power. Furthermore, we are also pleased to announce that we
had received “Certificate of Appreciation” from Commercial Taxes Department,
Government of Telangana for being tax compliant and contributing the highest
revenue towards realising the dream of Bangaru Telangana.
Going ahead, our
diversified geographic presence, cost rationalization measures, better product
mix and strong balance sheet positions us well to deliver consistent
performance and create value for our shareholders.”
| Sagar Cements : Consolidated Results | | | Quarter ended | Year to Date | Year ended |
|---|
| Particulars | 202209 | 202109 | Var.(%) | 202209 | 202109 | Var.(%) | 202203 | 202103 | Var.(%) |
|---|
| Net Sales (including other operating income) | 474.55 | 368.93 | 28.63 | 1,032.27 | 761.50 | 35.56 | 1,596.87 | 1,371.32 | 16.45 | | OPM (%) | 1.20 | 16.47 | -1,527 bps | 6.47 | 22.05 | -1,558 bps | 17.27 | 29.20 | -1,193 bps | | OP | 5.71 | 60.78 | -90.61 | 66.74 | 167.89 | -60.25 | 275.77 | 400.44 | -31.13 | | Other Inc. | 14.93 | 2.57 | 480.93 | 27.37 | 7.33 | 273.40 | 13.42 | 7.78 | 72.49 | | PBIDT | 20.64 | 63.35 | -67.42 | 94.11 | 175.22 | -46.29 | 289.19 | 408.22 | -29.16 | | Interest | 50.27 | 11.42 | 340.19 | 98.35 | 26.99 | 264.39 | 92.48 | 46.56 | 98.63 | | PBDT | -29.63 | 51.93 | PL | -4.24 | 148.23 | PL | 196.71 | 361.66 | -45.61 | | Depreciation | 37.93 | 19.93 | 90.32 | 74.51 | 39.34 | 89.40 | 92.71 | 81.03 | 14.41 | | PBT | -67.56 | 32.00 | PL | -78.75 | 108.89 | PL | 104 | 280.63 | -62.94 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT before EO | -67.56 | 32 | PL | -78.75 | 108.89 | PL | 104 | 280.63 | -62.94 | | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT after EO | -67.56 | 32 | PL | -78.75 | 108.89 | PL | 104 | 280.63 | -62.94 | | Taxation | -18.37 | 11.24 | LP | -16.46 | 38.04 | LP | 44.85 | 94.51 | -52.54 | | PAT | -49.19 | 20.76 | PL | -62.29 | 70.85 | PL | 59.15 | 186.12 | -68.22 | | Minority Interest (MI) | -6.94 | -0.31 | -2,138.71 | -12.82 | -1.65 | -676.97 | -10 | -0.42 | -2,280.95 | | Net profit | -42.25 | 21.07 | PL | -49.47 | 72.5 | PL | 69.15 | 186.54 | -62.93 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | -42.25 | 21.07 | PL | -49.47 | 72.5 | PL | 69.15 | 186.54 | -62.93 | | EPS (Rs)* | -3.23 | 1.61 | PL | -3.78 | 5.55 | PL | 5.29 | 14.27 | -62.93 | | | * EPS is on current equity of Rs 26.14 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) | 202209 | 202109 | Var.(%) | % of (Total) | 202209 | 202109 | Var.(%) | % of (Total) | 202203 | 202103 | Var.(%) |
|---|
| Sales | | Cement | 90.98 | 473.37 | 368.04 | 28.62 | 92.20 | 1,026.42 | 760.42 | 34.98 | 92.36 | 1,589.76 | 1,368.12 | 16.20 | | Power | 9.02 | 46.95 | 29.92 | 56.92 | 7.80 | 86.80 | 58.22 | 49.09 | 7.64 | 131.43 | 88.61 | 48.32 | | Total Reported Sales | 100.00 | 520.32 | 397.96 | 30.75 | 100.00 | 1,113.22 | 818.64 | 35.98 | 100.00 | 1,721.19 | 1,456.73 | 18.15 | | Less: Inter segment revenues | | 45.77 | 29.03 | 57.66 | | 80.95 | 57.14 | 41.67 | | 124.32 | 85.41 | 45.56 | | Net Sales | 100.00 | 474.55 | 368.93 | 28.63 | 100.00 | 1,032.27 | 761.50 | 35.56 | 100.00 | 1,596.87 | 1,371.32 | 16.45 | | PBIT | | Cement | 99.94 | -31.72 | 40.52 | PL | 106.35 | -7.70 | 130.16 | PL | 99.79 | 184.27 | 324.80 | -43.27 | | Power | 0.06 | -0.02 | -0.09 | 77.78 | -6.35 | 0.46 | -0.03 | LP | 0.21 | 0.39 | -0.89 | LP | | Total PBIT | 100.00 | -31.74 | 40.43 | PL | 100.00 | -7.24 | 130.13 | PL | 100.00 | 184.66 | 323.91 | -42.99 | | Less : Interest | | 50.27 | 11.42 | 340.19 | | 98.35 | 26.99 | 264.39 | | 92.48 | 46.56 | 98.63 | | Add: Other un-allcoable | | 14.45 | 2.87 | 403.48 | | 26.84 | 5.81 | 361.96 | | 11.82 | 3.28 | 260.37 | | PBIT Margin(%) | | Cement | | -6.70 | 11.01 | -1,771.06 | | -0.75 | 17.12 | -1,786.70 | | 11.59 | 23.74 | -1,214.95 | | Power | | -0.04 | -0.30 | 25.82 | | 0.53 | -0.05 | 58.15 | | 0.30 | -1.00 | 130.11 | | PBT | 100.00 | -67.56 | 31.88 | PL | 100.00 | -78.75 | 108.95 | PL | 100.00 | 104.00 | 280.63 | -62.94 |
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