Net sales during Q1 increased to Rs. 195 crore up 44% from Rs. 135 crore reported during the Q1FY15.

EBITDA improved substantially and stood at Rs. 38 crore as against Rs. 42 lakhs generated during the corresponding quarter last year. Higher gross realizations and better cost efficiency primarily drove the improved operational possibility.

Gross realization per ton improved to Rs. 5,259 from Rs. 4,302.

Company turned into profits of 23 crores as against a loss of 8 crores

Average fuel cost per ton reduced from 971 to 801 per ton – higher usage of imported coal, declining international prices and coal mix

Freight cost reduced to 651 as against 729 – decrease in fuel prices and lead distances

Net worth of the company – 544cr

D/E – 0.25

Bank Balance – 93 cr

Shift in focus from higher market share to certain sustainable level of EBIDTA

Not much capacity addition for further 3-5 years. Waiting for the demand to catch up, have enough capacity to meet the current demand and future demand. Addition of BMM to the company’s portfolio turned its sales growth into positive5% unlike the previous 2 quarters of -4% and -5%.

Chances are more by the company for going to imports for power and fuel.

Demand prospects for the next 2 to 3 quarters may remain flattish.

One of the factor affecting is the price is freight charges.

Not much CAPEX additions this fiscal.. 7-10 crores only.. general expenditures. Already spent 100 crores on railway project. Another 20 crores for automation. Another 5-6 crores for BMM to sustain the operations

Deal value of 540 crores for BMM acquisition.

http://www.dealcurry.com/20140814-Sagar-Cements-To-Buy-BMM-Cements.htm

150 crores paid till now

Equity and unsecured loans -110 crores

Debt – 280 crores

Installed capacity of Sagar -2.75 mn tonnes

BMM – 1 mn tonnes

All the increase in volume sales is only because of BMM. Expectations that the AP and Telangana governments may utilize the major capacity of the company’s production next fiscal year as this year both the govt’s had floated RFP

very late and the actual demand may start late too. 2 million tons from AP and 1 mn tonne from Telangana is expected. But this year only 0.5 mn tonnes may be demanded. Rest will be demanded by the end of next financial year.

Expecting savings of 1 crore per month. This savings mainly from imports, savings from exports/selling is not taken into consideration. Expecting that 60-70% of coal imports will be done through rail network unline 100% done now.