Sagar Cements Limited — Updates, 24-01-2025: Press Release

**Financial Highlights:** In Q3 FY25, Sagar Cements reported a revenue of ₹564 crore, reflecting a 16% decline YoY. The total sales volume decreased by 2% to 1.38 million tons compared to Q3 FY24. The operating EBITDA for the quarter was ₹37.64 crore, down 57% YoY, resulting in an EBITDA margin of 7%. Loss after tax stood at ₹54.45 crore, compared to a loss of ₹10.50 crore in the same period last year.

**Strategic Initiatives and Growth Drivers:** The company is focusing on enhancing its energy mix, increasing the green power ratio, and optimizing operational efficiencies. The recent commissioning of a 6 MW solar power plant at Gudipadu will contribute to reducing costs and improving margins.

**Business Developments:** Sagar Cements' capacity expansion plan at its Dachepalli plant aims to increase clinker capacity from 1.85 million tons to 2.31 million tons by FY26, with proposed capital expenditure of ₹470 crore.

**Market Position and Competitive Advantage:** The company maintains a strong market presence across southern India with over 10.5 million tons of production capacity, benefiting from strategic acquisitions and operational synergies that enhance efficiency and market reach.

**Investor Implications:** Despite the YoY revenue decline, positive steps toward capacity expansion and green energy integration suggest a long-term growth narrative. Investors should monitor how these initiatives impact financial performance amidst currently challenging market conditions.