Sagar Cements jumps 3% after firm declares 75% rise in Q4 EBITDA, operating margin improves to 10%

Earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter rose by 75% YoY to ₹68.13 crore. Operating EBITDA margin for the same period expanded to 10% compared to 6% in the corresponding quarter of last year.

For the financial year 2024, the company reported a net loss of ₹52.05 crore compared to a profit of ₹9.61 crore in the previous fiscal. Operating revenue grew 12% YoY to ₹2,504 crore. EBITDA for the financial year rose 61% YoY to ₹245.91 crore. The EBITDA margin for the same period grew to 10% from 7% in the previous fiscal.

Sreekanth Reddy, joint managing director at Sagar Cements said there is some weakness in the rural segment. “We expect the volume trend to sustain in coming years, as we steadily ramp up the utilization levels across all our units. Despite elevated volumes overall pricing remained relatively benign during the quarter,” he said.

Reddy also added that higher EBITDA/ton was influenced partly by improved cost management and fuel cost savings, as well as operating leverage. “We expect the trend to sustain in the near term supported by our investments aimed at increasing the share of green energy and waste heat recovery system (WHRS) capacity in our overall mix, along with the deployment of electric trucks and wheel loaders,” he said.

The firm indicated that operationally, Andhra Cement, Jeerabad and Jajpur units are progressing as per schedule, and it expects to achieve volumes of 6.50 million tonnes during FY25.

Meanwhile, the board of directors announced a dividend of ₹0.70 per share.

Shares of the company have declined by nearly 23% since the beginning of the year. The stock has gained over 5% in the last one year.