Sagar Cements has reported net consolidated loss after tax of Rs 42.23 crore during the quarter ended June 30, 2023. It had recorded net consolidated loss after tax of Rs 13.10 crore in the corresponding quarter of the previous fiscal, the company said in a BSE filing.
The company’s net consolidated total income stood at Rs 543.58 crore in Q1 FY24, a dip of 4.66 per cent from Rs 570.16 crore it recorded in the similar quarter last year.
As on June 30, 2023, the company’s net worth stood at Rs 1,646.70 crore, debt-equity ratio was 0.92, total debts to total assets was 39%, current liability ratio was 23%, operating margin was 6% and net profit margin was (8)%, it said in the regulatory filing.
Sreekanth Reddy, joint managing director of the company said, “We would like to highlight that Q1 performance was largely impacted owing to the maintenance shutdown undertaken for Matampally’s line II clinker production. That coupled with competitive pricing environment across our key markets weighed in on our quarterly performance.
Realisations have remained relatively stable as compared to the sequential quarter. Demand from both infrastructure and housing segments continued to witness good momentum aiding in healthy volume growth across regions.
Incremental volume growth was visible in the newly commissioned plants. We have seen a decline in our operating profitability by 50% during the quarter in part owing to benign pricing environment and also largely owing to high-cost inventory on the books. During Q1 FY24 the blended cement sales improved to 55% as against 50% reported during Q1 FY23.”
Plants operated at around 47% during the current quarter. Raw material cost per ton during Q1 FY24 was Rs 849 per ton as against Rs 733 per ton during Q1 FY23. Increase in sales from Jajpur resulted into increase in raw material cost since clinker is being transported from Mattampally unit to Jajpur.