Sagar Cements advances 11.21% to Rs 689.5 at 14:48 IST on the BSE after consolidated net profit rose 407% to Rs 29.51 crore on 25.2% rise in net sales to Rs 344.20 crore in Q1 June 2019 over Q1 June 2018.
The result was announced after market hours yesterday, 24 July 2019.
Meanwhile, the S&P BSE Sensex was up by 97.39 points or 0.26% to 37,945.21.
On the BSE, 12000 shares were traded in the counter so far compared with average daily volumes of 62 shares in the past two weeks. The stock had hit a high of Rs 720 and a low of Rs 643 so far during the day. It hit a 52-week high of Rs 829.75 on 3 August 2018 and a 52-week low of Rs 529 on 21 February 2019.
The company's earnings before interest tax depreciation and amortization (EBITDA) jumped 116.5% from Rs 36.98 crore in Q1 June 2018 to 80.07 crore in Q1 June 2019.
The company's plant utilisation capacity decreased from 67% in Q1 June 2018 to 55% in Q1 June 2019.
Higher revenue growth was due to improved pricing environment and steady volumes. Better realisations coupled with benign input costs resulted in margin expansion.
The company said outlook remained positive on the back of government's persistent efforts towards strengthening infrastructure capacities.
Commenting on the Q1 June 2019 performance, Sreekanth Reddy, Joint Managing Director of the company said, We have started the year on a positive note with revenue and profitability growth of 25% & 406% respectively for the quarter. While revenue growth was largely value driven given softening of demand amid election activities, given our diversified market presence, we were able to deliver steady volume growth as well. Profitability margins were further benefited by our recent strategic cost rationalization measures. We expect this overall momentum in the business to continue further. Looking ahead, pick up in construction activities coupled with stable pricing environment should help us in delivering steady and consistent performance.
Sagar Cements is engaged in manufacturing clinker and ordinary portland cement (OPC).
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