Hyderabad, India – January 24, 2025 – Andhra Cements Limited (NSE: ACL | BSE: 532141), a subsidiary of Sagar Cements Limited, has reported its unaudited financial results for the third quarter (Q3) and nine months ended December 31, 2024. The company continued to face financial headwinds, posting a significant net loss for the quarter.
Key Financial Highlights (₹ in lakhs)
| Particulars | Q3 FY25 (Dec 31, 2024) | Q2 FY25 (Sep 30, 2024) | Q3 FY24 (Dec 31, 2023) | 9M FY25 (Dec 31, 2024) | 9M FY24 (Dec 31, 2023) | FY24 (Mar 31, 2024) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 6,633 | 5,486 | 9,792 | 18,458 | 17,627 | 26,811 |
| Total Income | 6,828 | 5,615 | 9,836 | 19,238 | 17,732 | 27,662 |
| Total Expenses | 11,201 | 10,094 | 12,893 | 31,698 | 26,933 | 39,830 |
| Net Loss (Before Tax & Exceptional Items) | (4,373) | (4,479) | (3,057) | (12,460) | (9,201) | (12,168) |
| Net Loss (After Tax & Exceptional Items) | (4,373) | (3,488) | (2,119) | (10,220) | (4,683) | (6,561) |
| Earnings Per Share (₹) | (4.74) | (3.78) | (2.30) | (11.09) | (5.08) | (7.12) |
Performance Analysis
- Revenue Pressure: The company’s revenue from operations declined 32% YoY to ₹6,633 lakhs in Q3 FY25, compared to ₹9,792 lakhs in Q3 FY24. However, there was a 20.9% QoQ growth from ₹5,486 lakhs in Q2 FY25.
- Losses Widen: The net loss for the quarter stood at ₹4,373 lakhs, a sharp increase from ₹2,119 lakhs in Q3 FY24. The company’s total loss for the nine-month period widened to ₹10,220 lakhs, from ₹4,683 lakhs in the same period last year.
- Operational Costs: Rising power, fuel, and finance costs remain a significant burden. Power and fuel expenses for the nine-month period stood at ₹10,323 lakhs, while finance costs totaled ₹5,514 lakhs.
Strategic Developments
- Rights Issue Approval: The Board of Directors approved a rights issue of ₹18,000 lakhs to strengthen the company’s financial position. The Draft Letter of Offer (DLOF) was filed with SEBI, BSE, and NSE on September 30, 2024, and has since received in-principle approvals for listing.
- Segment Focus: The company remains focused on cement and cement-related products as its core business segment.
Management Commentary
Dr. S. Anand Reddy, Managing Director of Andhra Cements Limited, commented:"Despite the ongoing challenges in the cement sector, we are committed to operational improvements and financial restructuring. The rights issue will enable us to strengthen our capital structure and support long-term growth."
Outlook
- Focus on cost optimization: Given the persistent losses, Andhra Cements is expected to focus on reducing operational inefficiencies.
- Rights issue execution: Successful execution of the rights issue will be critical to improving liquidity.
- Sectoral demand recovery: Any recovery in cement demand could provide a much-needed boost to revenue in the coming quarters.
The financial results indicate that Andhra Cements faces a tough operating environment, with continued losses and revenue pressures. However, the company’s rights issue and strategic realignments may provide support for future recovery. Investors will be keenly watching how the company executes its financial restructuring plans.