Sagar Cements Targets 6.5 Million Tonnes in Production for FY25, Says Sreekanth Reddy.

Sagar Cements is targeting production volumes of 6.5 million tonnes during FY25, according to Joint Managing Director Sreekanth Reddy.

Reddy highlighted that the expansion plan at the Dachepalli unit of Andhra Cements is progressing as scheduled. "We are confident in achieving our target of 6.5 million tonnes during FY25. The board has also approved the installation of 6 MW solar power plants at our Gudipadu and Dachepalli units, aligning with our ESG objectives," he said.

In its financial performance, Hyderabad-based Sagar Cements reported a 5% increase in total revenue to ₹560 crore for the first quarter ending June 30, 2024, compared to ₹549 crore in the same period last year. The company posted a loss of ₹32 crore for the current quarter, an improvement from the ₹42 crore loss reported in the same quarter last year. The plants operated at approximately 49% capacity during the quarter.

“Our results align with expectations, given the soft demand and low prices during the quarter. Volume trends were impacted by an intense heatwave, labor shortages, and a slowdown in construction activities due to the General Elections," Reddy explained.

While there was a slight increase in demand towards the end of the quarter, the overall market remained subdued, he added.

HBL