Sagar Cements has reported net consolidated profit after tax of Rs 97.98 crore during the quarter ended March 31, 2023. It had registered loss after tax of Rs 19.15 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 802.58 crore in Q4 FY23, a growth of 58.65 per cent from Rs 505.89 crore it recorded in the similar quarter last year.
The board of directors recommended final dividend of Rs 0.70 per equity share of Rs 2 each (35%) on the 13,07,07,548 equity shares of the company.
Sreekanth Reddy, joint managing director of the company said, “We have ended FY23 on a positive note with strong volume growth and moderating raw material prices. Furthermore, the year also marks the milestone of us achieving 10 MnT capacity following the acquisition of Andhra Cements.
This acquisition helps us further solidify our position in our core markets and helps us better serve our customer in a cost effective way. The volumes would have been even higher but for labour unavailability due to festive season and unseasonal rains during the end of Q4. Input prices i.e coal and pet coke as well moderated during the quarter. Benign pricing environment, negated the dual benefit of high operating leverage and lower raw material prices.”
As on March 31, 2023, the company’s net worth stood at Rs 1,688.93 crore, net debt was Rs 1,261.64 crore, debt-equity ratio was 0.87, total debts to total assets was 39%, current liability ratio was 21%, operating margin was 6%, net profit margin was 16%.
The(NCLT)-Amaravati bench approved the terms of the resolution plan submitted by the company to acquire Andhra Cements (ACL) on February 16, 2023 pursuant to a corporate insolvency resolution process implemented under the Insolvency and Bankruptcy Code 2016. Pursuant to the resolution plan, the company has subscribed to 95% of the reconstituted paid-up share capital of ACL for an aggregate of Rs 322.23 crore and remaining 5% of the reconstituted paid-up share capital of ACL continue to be held by the existing public shareholders.
The company has proposed to invest Rs 468 crore in ACL to upgrade its capacities: Clinker capacity from 1.65 MTPA to 2.3 MTPA and cement capacity from 1.8 MTPA to 3 MTPA. Upgradation is expected to be completed by second half of FY25
Plants operated at around 65% during the current quarter, sales volume increased by 20 per cent year-on-year and stood at Rs 13,568.63 crore.