Sagar Cements spurted 5.22% to Rs 724 after the consolidated net profit soared 919.7% to Rs 50.17 crore on 22.8% increase in net sales to Rs 325.88 crore in Q2 September 2020 over Q2 September 2019.
Consolidated profit before tax (PBT) surged 969.80% to Rs 76.17 crore in Q2 September 2020 as against Rs 7.12 crore in Q2 September 2019. Current tax expense for the quarter jumped 286.60% to Rs 18.71 crore as against Rs 4.84 crore paid in Q2 September 2019. The Q2 result was declared post trading hours yesterday, 21 October 2020.
Speaking on the Q2 performance, Sreekanth Reddy, the Jt. managing director (MD) of Sagar Cements, has said that: "We have had a good first half with sharp improvement in profitability despite challenging environment. Volumes and prices are gradually improving on the back of good demand especially in the rural areas. Further, improving labor availability and restoration of supply chains following unlocking of the economy, is expected to maintain the demand momentum going forward."
"Steady realisations coupled with better efficiencies and cost containment has helped us in delivering higher profitability and margins. Rising share of CPP, savings from Waste Heat Recovery system, improving operations on cooler installations at SCRL, optimal fuel mix, close proximity of units to coal mines and ports have helped us in lowering our costs and maintaining higher efficiencies. In addition, the completion of MP and Odisha expansion should not only help us diversify our region & revenue mix but should result in further rationalization of our freight costs."
"Going ahead, improving product mix, access to faster growing markets, improving operational efficiencies and higher cash flows should help us in delivering steady and consistent growth going forward," Mr Reddy further stated.
Sales volume rose 2% to 7,22,195 million tonnes (MT) in Q2FY21 as against 7,10,384 million tonnes (MT) in Q2FY20. Consolidated operating EBITDA soared 147% to Rs 104.77 crore in Q2 FY21 as against Rs 42.37 crore in Q2 FY20. Operating EBITDA margin improved to 32% in Q2 FY21 from 16% in Q2 FY20.
During the current quarter, plants operated around 48% capacity. Implementation of greenfield projects of Satguru Cement, Madhya Pradesh and Jajpur Cements, Odisha is progressing as per schedule. As of 30 September 2020, net debt stood at Rs 450.93 crore.
The board has declared an interim dividend of Rs 2 per share for the FY 2020-21. Fixed 4 November 2020 as the record date for the purpose.
Sagar Cements is engaged in manufacturing clinker and ordinary portland cement (OPC).
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