Sagar Cements at new high
Sagar Cements, which had closed yesterday at Rs.688.05, opened at Rs.701.50 and rose to hit a new high at Rs.749.50. It has come off the high but trades in the green at Rs.729 levels.
The market is super thrilled with the company’s earnings for Q2FY21. Its consolidated net profit for the quarter jumped up 10-times to Rs.50 crore (YoY). Revenue from operations rose 23% at Rs.326 crore.
The improvement in the earnings was mainly on the back of a 21% rise in realisations and volume too grew 2%. By keeping the costs down, it was able to double up its EBITDA margin from 16% to 32%.
The company is optimistic about the road ahead and said volumes and prices are gradually improving on the back of good demand especially in the rural areas. It also said that improving labor availability and restoration of supply chains following unlocking of the economy is expected to maintain the demand momentum going forward.