Sagar Cements has posted a consolidated net loss of ₹27 crore in the third quarter ended December 2022 against ₹9.7 crore profit reported during the same period of previous financial year.
The total revenue of the Hyderabad-based company grew 73 per cent to ₹590 crore against ₹355 crore in the same period last year.
“While we have seen a good growth in our revenues for the quarter, profitability and margins were expectedly lower on account of higher input prices,’‘ Sreekanth Reddy, Joint Managing Director, Sagar Cements said.
The demand remained relatively steady benefiting from pick up in construction activities post monsoon and festive seasons which in turn resulted in better volumes for the quarter, he added.
“Higher volumes were also on account of commissioning of new facilities. Realisations were broadly stable. Despite higher volumes, profitability and margins were expectedly lower amidst elevated input prices. While we have seen cooling-off in prices of some of the key raw material components from their recent highs, overall, they continued to trend higher,” Reddy said.
On the acquisition of Andhra Cements, he said the acquisition was aligned with the company’s strategy of consolidating the company’s presence in established markets so that it can serve the customers in a cost efficient and timely manner.
“The acquisition also helps us to meet our stated objective of reaching 10 MT capacity by 2025. Moving forward, our diversified geographic reach, cost-saving strategies, improved product offerings, and robust financial position will enable us to perform well and generate value consistently for all our stakeholders,’‘ he said.