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Sagar Cements shares drop as street awaits profitability

Sagar Cements shares drop as street awaits profitability

Sagar Cements shares drop as street awaits profitability
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By CNBCTV18.com Jan 24, 2023 12:46:49 PM IST (Published)

The company recorded a net loss after tax of Rs 27.2 crore in the December quarter compared to a profit after tax of Rs 9.78 crore.

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 Sagar Cements Ltd. on Monday said that the company recorded a net loss during the December quarter despite a jump in revenue on account of higher input costs.

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The company’s consolidated revenue increased 73 percent year-on-year to Rs 575.7 crore in the December quarter compared to Rs 333.7 crore in the year-ago quarter. Sales volumes also rose 42 percent to 1.05 million tonnes compared to the year-ago period as plants operated at around 60 percent capacity during the quarter.

Despite the significant growth in revenue, the company recorded a net loss after tax of Rs 27.2 crore compared to a profit after tax of Rs 9.78 crore.

EBITDA stood at Rs 47.6 crore, or Rs 384 per tonne, as against Rs 46.75 crore, or Rs 629 per tonne, during the corresponding period a year ago.

The company’s EBITDA margins also declined sharply by 600 basis points to 8 percent compared to 14 percent a year ago.

Earlier this month, the Hyderabad-based cement producer was declared as the successful resolution applicant for Andhra Cements, a Jaypee Group company. Last year, Andhra Cements also received expressions of interest from Jindal Poly, Dalmia Bharat, and Khandwala Finstock Pvt. Ltd. According to reports, Sagar Cements was the frontrunner to acquire Andhra Cements.

The National Company Law Tribunal had directed the initiation of insolvency proceedings against Andhra Cements in April last year. The direction came after Pridhvi Asset Reconstruction and Securitisation Company Ltd. filed a petition against Andhra Cements, claiming a default.

Shares of Sagar Cement are trading 1.30 percent lower at Rs 220.10.

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