Sagar Cements shares drop as street awaits profitability

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.