The Rank Of Sagar Cement In the Consumer Market 22.

Sagar Cements Limited formally known as SCL and one of India’s leading cement manufacturers with our base in the Krishna river belt in southern India.

• Founded: 1967
• Headoffice: Hyderabad 
• Listed in NSE(SAGCEM), BSE(502090)
• Product: Cement
• Brand: Sagar
• Total Plant: 5
• Plant capacity: 8.25 MTPA.
• Website: www.sagarcements.in
• PAT FY22: 5,915 Lakh

Cement Industry future forecasted by Sagar Cements

The cement industry is expected to grow at 7% in FY2022 due to factors such as infrastructure growth, increased activity in urban and rural housing, rising rural incomes, and overall industrial growth.

The union budget FY2022 has allocated 48,000 Crores towards the Pradhan Mantri Awas Yojana to build affordable houses in urban and rural India.

This was enabled by strong government expenditure and the release of pent-up consumer demand. Projects under the National Infrastructure Plan (NIP) and initiatives, such as the Production Linked Incentive scheme, have reinvigorated economic activity, acting as force multipliers.

This indicates a reinforced commitment from the government towards infrastructure growth, which augurs well for the cement industry.

The Indian government’s plan to construct 25,000 km of highways and roads in FY2023, together with the continued execution of projects under the Bharatmala Pariyojna (BMP) and other infrastructure programs, are welcome developments for the industry.

Pradhan Mantri Awas Yojana (PMAY) is attracting strong focus. Further, following a resurgent
real estate demand, new projects across a combined area of 450 million sq ft are expected to be launched during FY2022-24 in the top 10 cities in India.

Sagar Cement Future implementation:

Sagar Cement Expanision:

Sagar Cement is increasing the production capacity to 8.25 MTPA, with the commissioning of Jeerabad and Jajpur plants in FY2022.

New plants at Jeerabad and Jajpur allow us to optimize our freight expense sight at serving newer geographies

This has helped us move a step closer to a target of achieving a capacity of 10 MTPA cement by the year 2025.

Sagar has successfully expanded to newer markets in Maharashtra and Odisha, increasing our customer base.

The operating margins were under pressure due to the high costs of inputs like coal, coke, and diesel. The Company has conducted operations maintenance for all its plants, resulting in additional expenditure.

Sagar Product Manufacturing

• Ordinary Portland Cement (OPC)
• Portland Pozzolana Cement (PPC)
• Portland Slag (PSC)
• Composite Cement (CC)
• Ground Granulated Blast-furnace Slag (GGBS)
• Sulphate Resistant Cement (SRC)

Sagar Cement Technology

Sagar Cement are using advanced technology to produce quality cement at competitive rates, thereby creating an attractive value proposition for customers.

Investment towards technology: 430 Lakhs

Concrete Labs
SCL set up the Concrete Lab in 2017 to create awareness about blended cement among our customers. The idea was to demonstrate that concrete made with blended cement is as durable as OPC and to emphasise the cost effectiveness and environmental benefits of blended cement, whose production enables us to save water, energy, raw materials and cut down on GHG emissions.

• Other innovations to improve efficiencies:
  • Air filter cleaning system to reduce dust
  • Using water bottles and HDPE pipes to improve blasting efficiency

Sagar Cement plant:

• Total captive power capacity: 66.85 MW
• Total cement capacity: 8.25 MTPA
• Clinker capacity: 4.75 MTPA
• Limestone reserves: 625.05 MnT

1. Mattampally, Telangana
   • Capacity 3.0 MTPA
   • Capacity utilization 54%
   • Captive power 28.13 MW
     • Thermal Power: 18.00 MW
     • Green energy: 10.13 MW
   • Limestone reserves 401.28 MnT
2. Gudipadu, Andhra Pradesh
   • Capacity 1.25 MTPA
   • Capacity utilization 74%
   • Captive power 25 MW
     • Thermal Power: 25.00 MW
   • Limestone reserves 160.93 MnT
3. Bayyavaram, Andhra Pradesh
   • Capacity 1.5 MTPA
     • Capacity utilization 61%
   • Captive power 8.42 MW
     • Hydro Power: 8.30 MW
     • Solar Power: 120kw
4. Jeerabad, Madhya Pradesh
   • Capacity 1 MTPA
   • Limestone reserves 62.82 MnT
   • WHRS Power plant: 5.3 MW
5. Jajpur, Odisha
   • Capacity 1.5 MTPA

Sagar Operational metrics:

Cement production

• FY18: 26,45,680 MT
• FY19: 32,54,043 MT
• FY20: 30,44,236 MT
• FY21: 30,67,099 MT
• FY22: 36,00,309 MT

Clinker production

• FY18: 22,76,991 MT
• FY19: 24,96,489 MT
• FY20: 23,83,733 MT
• FY21: 23,00,568 MT
• FY22: 29,43,173 MT

• Volume growth of 14% over the previous year
• 46% of cement produced belongs to the blended cement category
• 3.6 million tons of finished goods were transported by road while 0.0068 million tonnes of cement were moved via rail. The yearly lead distance factor stood at 294 km
• Additional cost impact from input prices
• Steps were taken to lower costs of operation, such as using a mixture of petcoke and coal to mitigate pricing risks, reducing freight costs, and improving margins through the completion of our plants in MP and Odisha

Sagar Cement Network:

• Number of Distributors: 2,244
  • New Distributors: 634
  • Sub dealers: 4,501
• Repeat purchase rate: 80%

Sagar Cement Shareholding pattern:

• Promotors: 50%
• Non-institutions: 36%
• Institutions: 14%

Sagar Cement Financial Information:

• Cement Sales: 36,03,754 Ton
• Total Revenue: 1,59,687 Lakhs
• Profit Before Tax: 10,400 lakhs
• Profit After Tax: 5,915 Lakhs

The ratio of Sagar Cement

• Debtor’s Turnover Ratio: 13.22
• Inventory Turnover Ratio: 9.23
• Interest Coverage Ratio: 2.64
• Current Ratio: 1.92
• Debt Equity Ratio: 1.15
• Operating Profit Margin: 17%
• Net Profit Margin: 4%
• Return on Net worth: 5%

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