Sagar Cements posted a net loss of ₹42 crore in the first quarter ended June 30, 2023. In the corresponding quarter of the previous financial year, it incurred a loss of ₹13 crore.
The total revenue of the Hyderabad-based company declined by 5 per cent at ₹543 crore against ₹570 crore in the year ago period.
“The first quarter 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,’’ Sreekanth Reddy, Jt. Managing Director. Sagar Cements said in a release.
Sagar’s operating profitability declined by 50 per cent during the quarter in part owing to the benign pricing environment and also largely owing to high-cost inventory on the books, according to Reddy.
The company was expecting the margins to ``benefit’’ from falling fuel prices in the coming quarters in addition to moderating input prices, higher utilisation levels and regional diversification, he added.
The plants operated at around 47 per cent during the current quarter.
During Q1 FY24 the blended cement sales improved to 55 per cent as against 50 per cent reported during Q1, FY23. In terms of operations, as mentioned earlier, Sagar’s efforts are directed towards improving the overall efficiencies and ramping up the utilization levels of its recently acquired units.
“Our Jeerabad and Jajpur facilities are performing in line with our expectations and we believe we will be able to achieve 80 per cent utilszation levels for the former and EBITDA breakeven for Jajpur during this fiscal,’’ Reddy said.