Sagar Cements posted ₹10.18 crore consolidated loss in the third quarter of the current fiscal ended December 31, 2023, on a year-on-year (y-o-y) basis. In the corresponding quarter of the previous financial year, the company incurred a loss of ₹23.68 crore.
The revenue of the Hyderabad-based company increased 16 per cent to ₹669 crore in the quarter under review (₹576 crore).
“We had a good quarter marked by healthy volumes and steady realisations. Although overall volumes were affected by State elections and labour shortages during the festive season, we witnessed a 14 per cent growth in volumes during Q3 FY24 when compared with Q3 FY23,’‘ Sreekanth Reddy, Jt Managing Director, Sagar Cements, said in a release.
Favourable prices
“Additionally, favourable prices prevailed in our key markets, leading to a 16-per cent increase in revenue for the quarter. As far as EBITDA and margins are concerned, we observed a significant enhancement on a per-tonne basis, consistent with our earlier projections,” he added.
The combination of increased operating leverage and consistent realisations contributed to improved profitability for the quarter.
“We anticipate this positive trend to persist in the future, supported in part by higher utilisation levels of recently-acquired units and strategic initiatives aimed at promoting the use of green power, alternative fuels, as well as the deployment of electric trucks and wheel loaders,” Reddy added.