Saurashtra Cement Limited — Results, 22-05-2025: Integrated Filing- Financial

Saurashtra Cement has announced a board meeting to consider the financial results for the quarter and half-year.

Consolidated revenue for FY25 was ₹1,518 Cr, showing marginal growth from ₹1,509 Cr last year, mainly driven by the cement production segment. Net profit dropped sharply to ₹14 Cr from ₹90 Cr, with EPS reflecting this decline. Margin pressures stem from higher finance costs and volume challenges, while depreciation remains significant at ₹42 Cr, highlighting the capital-intensive nature of the business.

Finance costs jumped to ₹13.6 Cr from ₹8.1 Cr, squeezing profitability. Raw material and employee expenses stayed steady, but the rise in borrowing costs and fixed expenses point to operational efficiency under stress. EBITDA and EBIT margins contracted notably, and higher trade payables suggest tighter supplier terms or working capital strain.

Borrowings increased substantially—long-term debt rose to ₹33 Cr from ₹10 Cr, and short-term loans also went up—indicating increased leverage for working capital and capex, which amounted to ₹86 Cr. Cash balances improved to ₹60 Cr, supported by positive operating cash flow and financing inflows.

While management has not provided explicit commentary, elevated debt and capex signal ongoing capacity expansion or plant modernization. Overall, stable revenue masks profitability pressure from rising costs and heavy capex. Retail investors should monitor debt levels and margin recovery closely, as near-term momentum depends on improved cost management and operational leverage.