Sagar Cements – Focus On Growth, Efficiency To Drive Strong Profitability: ICICI Direct

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Sagar Cements Ltd. ended FY21 with an impressive performance, with revenue growth of 16.7% YoY to Rs 1371 crore along with Ebitda margin expansion of over 1341 basis points to 29.2% and profit after tax of over Rs 186 crore despite pandemic woes.

Significant volume catch-up in H2 FY21, low cost of production (Rs 3074/tonne, lowest in industry) and firm realisations helped it to achieve highest Ebitda margins (second best in industry).

Consistent focus on backward integration, achieving 100% self-sufficiency in power with 61.6 megawatt power plant, focus on reducing lead distance by efficiently utilising the locational advantage of the company’s (R)’s plant were some key measures that helped the company to achieve cost efficiency in the past three years.

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ICICI Direct Sagar Cement Company Update.pdf

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