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Sagar Cements posted a consolidated net profit of Rs 4.52 crore in the second quarter ended September 30, 2019.
In the same quarter last year, the Hyderabad-based cement maker had incurred a loss of Rs 8 crore. The total revenue has increased by 14 per cent to Rs 265 crore, as against Rs 258 crore in the year-ago period.
“The growth would have been even better, but for the sluggishness in the overall economy and an extended monsoon, which weighed down on demand. Profitability improved on the back of several cost-saving initiatives as well as moderating input costs,” Sreekanth Reddy, Joint Managing Director, Sagar Cements, said in a release.
“We expect a further improvement in operational profitability and margins going forward, following the ramping up of our WHR plant and the commissioning of our captive power plant. Further, reallocation of sales should help in rationalising freight expenses,'' he added.
The company’s higher revenue growth came on the back of an improved pricing environment and steady volumes. Better realisations, coupled with benign input costs, resulted in margin expansion.
The business outlook “remains positive on the back of the government’s persistent efforts towards strengthening Infrastructure,'' the company said.
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