On consolidated basis
Quarter ended March 2022 compared
with Quarter ended March 2021.
Net sales (including other operating income) of Sagar Cements has increased
20.13% to Rs 501.72 crore. Sales of Cement segment has gone up
19.96% to Rs 499.76 crore (accounting for 92.78% of total
sales). Sales of Power segment has gone up 42.75% to Rs 38.90 crore
(accounting for 7.22% of total sales). Inter-segment sales rose Rs
26.20 crore to Rs 36.94 crore.
Profit
before interest, tax and other unallocable items (PBIT) has slumped 64.53% to
Rs 29.85 crore. PBIT of Cement segment fell 64.44% to Rs 30.06 crore
(accounting for 100.70% of total PBIT). PBIT of Power segment rose
44.74% to Rs -0.21 crore (accounting for -0.70% of total PBIT).
PBIT
margin of Cement segment fell from 20.29% to 6.01%. PBIT margin of
Power segment rose from negative 1.39% to negative 0.54%. Overall
PBIT margin fell from 18.96% to 5.54%.
Operating profit margin has declined
from 24.96% to 12.18%, leading to 41.40% decline in operating profit to Rs
61.09 crore. Raw material cost as a % of total sales (net of stock
adjustments) decreased from 16.25% to 13.28%. Purchase of finished
goods cost rose from 0.91% to 1.06%. Employee cost decreased from
5.62% to 5.45%. Other expenses rose from 52.15% to 67.68%.
Power and Oil fuel cost rose from 21.25% to 34.97%.
Freight charges fell from 18.25% to 17.94%.
Other
income rose 143.86% to Rs 4.17 crore. PBIDT fell 38.41% to Rs 65.26
crore. Provision for interest rose 334.78% to Rs 47.13
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 80.94% to Rs 18.13 crore. Provision for depreciation rose
56.38% to Rs 31.51 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 reported loss of Rs 13.38 crore compared to profit of Rs 74.97
crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 5.77 crore, compared to
Rs 26.83 crore. Effective tax rate was negative 43.12% compared to
35.79%.
Minority interest decreased
6,845.45% to Rs -7.64 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
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.
Dividend:
The Board of Directors have recommended a Dividend of Rs 0.70 per equity share.
Management Commentary
Commenting
on the performance Mr Sreekanth Reddy, Jt Managing Director of the company
said, “We are pleased with our performance for the quarter which
witnessed a gradual pick up in volumes as well as realisations over the
previous quarter. Realisations have further improved compared to the exit price
of the quarter largely necessitated by the unrelenting increase in fuel prices.
Demand sentiment as well is fairly buoyant, helping sustain the price revision.
The increased volumes was largely owing to commissioning of new units.
Another noteworthy development was
the investment by Premji Invest to help meet the organic and inorganic
aspirations of the Company. We will jointly work with Premji Invest towards
setting up a best-in-class governance process in our endeavor to drive value
creation for all the shareholders. Furthermore, we are also pleased to announce
that we have been awarded the “Best Management Award” by the Govt. of Telangana
and Gudipadu Unit was Awarded with “State Level and Zonal level overall 2nd
prize for Mines Safety -2022”, in appreciation of the Safety and other working
parameters in Mines by Mines Safety Association, Karnataka under the aegis of
Directorate General of Mines Safety, Government of India.
Our cost rationalization measures,
and better inventory management helped us partly control the pressures of
rising input prices. As indicated earlier, we have increased the usage of
domestic coal and lowered our consumption of pet coke during the quarter which
has helped us in lowering our operational cost
Going ahead, we believe the commissioning of the
new units coupled with a strong balance sheet following the preferential
allotment positions us well to deliver steady and consistent growth.”
| Sagar Cements : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202203 | 202103 | Var.(%) | 202203 | 202103 | Var.(%) |
|---|
| Net Sales (including other operating income) | 501.72 | 417.65 | 20.13 | 1,596.87 | 1,371.32 | 16.45 | | OPM (%) | 12.18 | 24.96 | -1,278 bps | 17.27 | 29.20 | -1,193 bps | | OP | 61.09 | 104.25 | -41.40 | 275.77 | 400.44 | -31.13 | | Other Inc. | 4.17 | 1.71 | 143.86 | 13.42 | 7.78 | 72.49 | | PBIDT | 65.26 | 105.96 | -38.41 | 289.19 | 408.22 | -29.16 | | Interest | 47.13 | 10.84 | 334.78 | 92.48 | 46.56 | 98.63 | | PBDT | 18.13 | 95.12 | -80.94 | 196.71 | 361.66 | -45.61 | | Depreciation | 31.51 | 20.15 | 56.38 | 92.71 | 81.03 | 14.41 | | PBT | -13.38 | 74.97 | PL | 104 | 280.63 | -62.94 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | | PBT before EO | -13.38 | 74.97 | PL | 104 | 280.63 | -62.94 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | -13.38 | 74.97 | PL | 104 | 280.63 | -62.94 | | Taxation | 5.77 | 26.83 | -78.49 | 44.85 | 94.51 | -52.54 | | PAT | -19.15 | 48.14 | PL | 59.15 | 186.12 | -68.22 | | Minority Interest (MI) | -7.64 | -0.11 | -6,845.45 | -10 | -0.42 | -2,280.95 | | Net profit | -11.51 | 48.25 | PL | 69.15 | 186.54 | -62.93 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | -11.51 | 48.25 | PL | 69.15 | 186.54 | -62.93 | | EPS (Rs)* | -0.62 | 3.69 | 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 ended |
|---|
| % of (Total) | 202203 | 202103 | Var.(%) | % of (Total) | 202203 | 202103 | Var.(%) |
|---|
| Sales | | Cement | 92.78 | 499.76 | 416.60 | 19.96 | 92.36 | 1,589.76 | 1,368.12 | 16.20 | | Power | 7.22 | 38.90 | 27.25 | 42.75 | 7.64 | 131.43 | 88.61 | 48.32 | | Total Reported Sales | 100.00 | 538.66 | 443.85 | 21.36 | 100.00 | 1,721.19 | 1,456.73 | 18.15 | | Less: Inter segment revenues | | 36.94 | 26.20 | 40.99 | | 124.32 | 85.41 | 45.56 | | Net Sales | 100.00 | 501.72 | 417.65 | 20.13 | 100.00 | 1,596.87 | 1,371.32 | 16.45 | | PBIT | | Cement | 100.70 | 30.06 | 84.53 | -64.44 | 99.79 | 184.27 | 324.80 | -43.27 | | Power | -0.70 | -0.21 | -0.38 | 44.74 | 0.21 | 0.39 | -0.89 | LP | | Total PBIT | 100.00 | 29.85 | 84.15 | -64.53 | 100.00 | 184.66 | 323.91 | -42.99 | | Less : Interest | | 47.13 | 10.84 | 334.78 | | 92.48 | 46.56 | 98.63 | | Add: Other un-allcoable | | 3.90 | 1.66 | 134.94 | | 11.82 | 3.28 | 260.37 | | PBIT Margin(%) | | Cement | | 6.01 | 20.29 | -1,427.56 | | 11.59 | 23.74 | -1,214.95 | | Power | | -0.54 | -1.39 | 85.46 | | 0.30 | -1.00 | 130.11 | | PBT | 100.00 | -13.38 | 74.97 | PL | 100.00 | 104.00 | 280.63 | -62.94 |
|
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