ICICI Direct: Sagar Cements’ Lower Sales Volume Largely Offset By A Sharp Rise In Cement Prices

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.Sagar Cements Ltd. reported a robust performance with Ebitda, profit after tax growth of 10%, 22%, respectively, in a challenging Q1 FY21.The results were ahead of our estimates mainly on account of a sharp increase in cement prices in Andhra Pradesh, Telangana aided by lower fuel prices during the quarter.Revenues fell 23.3% YoY to Rs 264.1 crore (broadly in line with our estimated revenue of approximately Rs 271 crore.Sharp fall in sales volume (down 32.5% YoY to 0.55 metric tonne was largely offset by a sharp rise in cement prices (up 13.8% YoY, 31.6% QoQ to Rs 4775/t) in AP, Telangana region.The company outperformed our expectations on the margins, profitability front, reporting Ebitda margins of 32.9% (up 1010 basis points YoY) for the quarter, which is highest ever margins reported so far during the quarter by any cement company.Drop in petroleum coke prices also helped it to reduce power and fuel cost by 24% YoY to Rs 805/tonne. Capacity utilisation for the quarter was at 37%..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Direct: Sagar Cements’ Lower Sales Volume Largely Offset By A Sharp Rise In Cement Prices

ICICI Direct: Sagar Cements’ Lower Sales Volume Largely Offset By A Sharp Rise In Cement Prices

Choose a plan