Sagar Cement Result Update For September 2012 Quarter
DSIJ Intelligence / 26 Oct 2012
Sagar Cement, one of the small cement manufacturing companies based out of Andhra Pradesh, announced its Sept Quarter result wherein the net sales of the company has shown a decline of 18.81 per cent on a YoY basis to Rs 135 crore.
Sagar Cement, one of the small cement manufacturing companies based out of Andhra Pradesh, announced its Sept Quarter result wherein the net sales of the company has shown a decline of 18.81 per cent on a YoY basis to Rs 135 crore. The net profit has gone down by 18 per cent to Rs 4.82 crore as compared to Rs 5.91 crore that of the same period last year. This was largely on the back of the monsoon which resulted into muted demand and also led to fall in the cement prices. During the quarter the sales volume of the company was down by 8.4% on YoY basis to 0.372 mn tonnes while the realisation was lower by 11 per cent on a YoY basis to Rs 3,651.9 per tonne.
| Sales Volume & Realisation | |||||
|---|---|---|---|---|---|
| Particulars | Sept ' 12 | Sept ' 11 | YoY | Jun ' 12 | QoQ |
| Sales Volume (Million Tonnes) | 0.372 | 0.406 | -8.4 | 0.399 | -6.8 |
| Sales Revenue (Rs Crore) | 135.85 | 167.32 | -18.8 | 185 | -26.6 |
| Realisation (Rs Per Tonne) | 3651.9 | 4121.2 | -11.4 | 4556.7 | -19.9 |
The operating margin of the company was down by 260 bps on a YoY basis to 12.02 per cent. This was largely on account of an increase in the input cost of the company. The average fuel cost per tonne of clinker production during the quarter was at Rs 984 as compared to Rs 951 per tonne in the previous corresponding quarter. The total freight cost per tonne of cement for the quarter stood at Rs 704 as compared to Rs 689 in the previous corresponding quarter on account of higher diesel prices and also due to an increase in lead distance as 52 per cent of cement is now sold to states outside AP. There is a decrease in raw material cost of up to 7.7 per cent YoY mainly on account of lower volumes.
| Financial Performance Sept Qtr 2012 (Amount In Crore) | |||||
|---|---|---|---|---|---|
| Particulars | Sept ' 12 | Sept ' 11 | YoY | Jun ' 12 | QoQ |
| Sales | 135.85 | 167.32 | -18.8 | 150.35 | -9.6 |
| Raw Material | 12.84 | 13.92 | -7.8 | 13.44 | -4.5 |
| Power And Fuel | 52.98 | 45.29 | 17.0 | 52.5 | 0.9 |
| Operating Profit | 16.34 | 24.49 | -33.3 | 20.05 | -18.5 |
| Net Profit / Loss | 4.82 | 5.91 | -18.4 | 4.12 | 17.0 |
| Margins | |||||
| OPM(%) | 12.02 | 14.63 | -2.61 | 13.33 | -1.31 |
| NPM(%) | 3.44 | 3.52 | -0.08 | 2.73 | 0.71 |
We believe that the company has posted muted numbers for the September quarter, particularly with regard to the bottomline which was lower due to a fall in realisation and an increase in the input costs. However, with the retreating monsoons and supplemented demand from the housing sector, this scenario may improve in the coming quarter.
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