Sagar Cement: Well placed to capture growth in AP/Telangana

Sagar Cement

30 November 2017

Update | Sector: Cement

Spotlight

The Idea Junction

Well placed to capture growth in AP/Telangana

Cost efficiencies and scaling of capacity to drive profits

Sagar Cements (SGC) is a Hyderabad-based cement company, primarily operating in the

southern market of India (~78% of overall volumes). The company’s key markets are

AP/Telangana (~46% of volumes), Tamil Nadu (~16%) and Karnataka (~16%). To diversify

geographically, SGC is likely to increase its capacity from 4.3mt currently to ~5.8mt by

FY20.

Stock Info

Bloomberg

CMP (INR)

Equity Shares (m)

M.Cap. (INR b) / (USD b)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

SGC IN

872

20.4

17.8 / 0.3

940 /605

-2/-9/-4

Ready to capitalize on available opportunities

SGC is well placed to capitalize on strong opportunities in the underlying markets

of AP/Telangana, where demand has grown in excess of 20% YoY over the past

12-15 months. We expect cement demand in AP/Telangana to grow at 12-15%

over the next two years, driven by the government’s push toward infrastructure

development and creation of a new state capital of Amravati (Andhra Pradesh).

This is likely to result in strong volume growth for SGC.

Financial Snapshot (INR m)

Y/E March

2015* 2016 2017

Sales

6,351 8,624 9,416

EBITDA

597 1,231 1,104

Adj. PAT for OI

118

443

-39

Adj. EPS (INR)

-2

Adj. EPS Gr. (%)

L/P

274

P/L

BV/Sh. (INR)

256

269

374

RoE (%)

-1

RoCE (%)

Valuations

P/E (x)

P/BV (x)

EV/EBITDA (x)

*Standalone

Shareholding pattern (%)

As On

Sep-16 Jun-17 Sep-17

Promoter

56.9

50.0

DII

5.6

15.5

15.6

FII

2.2

3.6

3.5

Others

35.3

30.9

FII Includes depository receipts

Stock Performance (1-year)

Sagar Cements

Sensex - Rebased

950

850

750

650

550

Diversification and low-cost capacity addition to bring in stability

In an attempt to diversify geographically, SGC is likely to increase capacity by

~35% over FY17-19 at a minimal capex of INR2b (USD20/t) by way of

debottlenecking and brownfield expansion. With capacity ramp-up in

Bayyavaram, SGC is likely to increase its presence in east, which has seen strong

growth. Low-cost capex will meaningfully improve its return ratios, in our view.

Cost efficiencies to further drive margins

SGC is likely to improve its cost curve over the medium term, led by i)

stabilization of WHRS, ii) commissioning of the 18MW thermal power unit, iii)

lead distance reduction for the eastern markets due to capacity expansion in

Vizag and iv) impact of positive operating leverage, driven by volume growth.

Available at a discount to peers

SGC intends to double capacity every 10 years via low-cost brownfield expansion

and debottlenecking projects, given that it has access to large limestone reserves.

This is likely to structurally improve its return ratios. We believe that given the

prospects of strong sustainable growth, SGC is attractively priced at EV/t of

~USD60-65 – a significant discount to replacement cost of USD110/t.

Our coverage universe is a wide representation of investment opportunities in India. However,

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used or relied upon as investment advice.

Interesting: Currently, the analyst

believes that this is an interesting

stock based on its fundamental

strength

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does not have adequate

conviction based on fundamental

assessment of the stock

In Transition: Currently, the

analyst thinks that the stock is in

transition from "Cautious" to

"Interesting"

Abhishek Ghosh – Research analyst

(Abhishek.Ghosh@motilaloswal.com); +91 22 6129 1538

Pradnya Ganar – Research analyst

(Pradnya.Ganar@motilaloswal.com); +91 22 3980 4322

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Investors are advised to refer through important disclosures made at the last page of the Research Report.

spotlight | Sagar Cement

Well placed to capture demand revival in AP/Telangana



Cement demand in its focus markets of AP/Telangana has been growing at a

sustainable rate of 15-20% YoY over the past 15-20 months.

Demand growth in its underlying markets of AP/Telangana will continue to be strong,

given creation of a new capital (Amaravati) of AP, demand from the 2BHK housing

scheme, and infrastructure push.



Strong demand from irrigation projects like Mission Bhagiratha, Mission Kakateeya,

Kaleswaram and Polavaram will further fuel demand growth.

Over the medium-to-long term, demand revival in TN and Karnataka should drive

strong growth for SGC.

Strong demand growth in AP/Telangana



The company’s key focus regions of AP/Telangana witnessed demand growth of

14% YoY in FY17 and 8% YoY in 1HFY18, led by i) low-cost housing and 2BHK

housing schemes, ii) road construction by NHAI, iii) irrigation projects like

Mission Bhagiratha, Mission Kakateeya, Kaleswaram and Polavaram, and iv)

development of commercial and government infrastructure in Amaravati.

We expect demand to remain strong in the region, given the government’s

focus on infrastructure development and also formation of a new state (which

will require creation of infrastructure).

Cement demand in south increased ~7% YoY in FY17, as strong growth in

AP/Telangana was partially offset by muted demand in Tamil Nadu. However, in

1HFY18, demand in south declined by 4% YoY due to weakness in TN (demand

down by ~20% YoY) and Kerala (by 8%).

Exhibit 1: Demand trend in south

South demand (mt)

13%

-3%

-7%

16.93

1QFY17

16.10

2QFY17

15.35

3QFY17

16.57

4QFY17

15.73

1QFY18

15.84

2QFY18

-2%

12%

South YoY growth

Source: MOSL, Company



Demand in Tamil Nadu remains weak (down ~20% in 1HFY18; marginal decline

in FY17) on account of (i) poor monsoon (although some recovery is expected

this year), ii) sand mining ban (not resolved to date) and iii) political instability

(leading to weak infrastructure spend).

30 November 2017

spotlight | Sagar Cement

Exhibit 2: AP/Telangana grew by 21% in 2QFY18…

Andhra Pradesh and Telangana demand (mt)

AP/Telangana YoY growth

29%

15%

21%

-2%

-3%

21%

Exhibit 3: …while Tamil Nadu declined by 22%

Tamil Nadu demand(mt)

-13%

Tamil NaduYoY growth

-14%

-22%

5.13

1QFY17

4.30

2QFY17

4.56

3QFY17

5.14

4QFY17

5.00

1QFY18

5.18

2QFY18

4.76

1QFY17

5.18

2QFY17

4.72

3QFY17

4.59

4QFY17

4.07

1QFY18

4.02

2QFY18

Source: MOSL, Company



Source: MOSL, Company

Demand in Kerala appears to be reviving, with healthy growth in September

2017 versus an 8% YoY decline in 1HFY18.

Demand in Karnataka was muted (flat growth) in 1HFY18. However, in 2HFY18,

cement demand is likely to grow at a healthy rate, as the upcoming election may

lead to increased infrastructure spend.

Exhibit 5: …while Karnataka grew by 3% in same quarter

Karnatka demand (mt)

11%

Karnataka YoY growth

Exhibit 4: Kerala declined by 4% in 2QFY18…

Kerala demand (mt)

18%

13%

Kerala YoY growth

-4%

-11%

-2%

2.30

2QFY18

4.49

1QFY17

4.22

2QFY17

4.11

3QFY17

4.75

4QFY17

4.39

1QFY18

4.34

2QFY18

2.55

1QFY17

2.40

2QFY17

1.97

3QFY17

2.09

4QFY17

2.27

1QFY18

Source: MOSL, Company



Source: MOSL, Company

The eastern market is also likely to see strong growth in the medium term, led

by housing schemes like Biju Pacca Ghar. SGC’s capacity addition in Vizag will be

primarily focused on the eastern markets.

30 November 2017

spotlight | Sagar Cement

Diversifying into newer markets/products



Over the past few years, SGC has increased its exposure to the higher-priced markets

of TN/Kerala by way of acquisitions.

It has also increased its presence in Odisha via the acquisition of the Bayyavaram

grinding unit, and thus, diversified away from being predominantly an AP/Telangana

cement player.



Via its plant in Mattampally, the company has expanded its presence in Maharashtra,

further de-risking its portfolio geographically.

SGC is likely to increase capacity by 35% over the next 18 months at an incremental

capex of ~USD20/t (low-cost). This should improve its return ratios.



SGC, by way of acquisitions, has improved its ability to service the higher-priced

markets of Tamil Nadu and Karnataka (reduced lead distance has ensured cost

efficiency). Additionally, it has diverted Mattampally plant volumes toward

Maharashtra. The company has also acquired a grinding unit in Vizag to cater to

the southern markets of Odisha.

Exhibit 6: Locational advantage through acquisition synergies

Source: MOSL, Company

Capacity details



SGC has cement capacity of 4.3mt



Sagar Cement, Mattampally, Nalgonda, Telangana (3mtpa)



SC(R) formerly known as BMM Cements, Gudipadu, Andhra Pradesh (1mt)



Sagar Cement, Bayyavaram, Vishakhapatnam, Andhra Pradesh(0.3mtpa)

These capacities cater to the markets of Andhra Pradesh, Telangana,

Maharashtra, Karnataka, Orissa and Tamil Nadu. It has reduced its dependence

on its key markets of Andhra Pradesh and Telangana from 54% in FY12 to 45% in

FY17 by tapping growth opportunities in Karnataka, Maharashtra, Tamil Nadu

and Orissa.

30 November 2017

spotlight | Sagar Cement

Capacity-building via acquisitions to boost reach in cost-effective manner



SCL acquired a 1mtpa plant from BMM Cement in August 2015 at an enterprise

value of INR5.4b, taking its cement capacity to 4mtpa. The acquisition was

partially funded via cash generated from stake sale in the Vicat JV. The acquired

entity was later named as SC(R). While BMM serves the markets of Rayalaseema

and parts of Tamil Nadu and Karnataka, Mattampally serves the markets of

AP/Telangana, Maharashtra and parts of Orissa. The BMM plant has consistently

reported better realization than the Mattampally unit, as the markets served by

BMM are better priced than those served by Mattampally. The acquisition has

generated significant synergies by reducing average lead distance to less than

500km.

The BMM acquisition has helped SGC to emerge as a strong force in the

southern markets, with superior lead distance. This will help SCL improve its

margins and reach.

SCL has witnessed continuous improvement in realization, most of it coming

from the states outside its key markets of Andhra Pradesh and Telangana. A

channel mix of 70% trade and 30% non-trade, and a strong network of ~2,150

dealers, enables it to cater to these markets.

Foraying into eastern markets



SGC acquired a grinding unit of 0.3mt at Bayyavaram (Vizag), which will produce

Portland Slag Cement (PSC) due to availability of slag in this region. Clinker will

be supplied by the mother plant in Mattampally district, Nalgonda. The

introduction of PSC will lead to improved profitability and reduced lead

distance.

Exhibit 8: Region-wise sales

17%

45%

Andhra Pradesh

Karnataka

Maharashtra

Tamil Nadu

Orissa

16%

Others

Exhibit 7: Well-diversified market mix

13%

Source: MOSL, Company

30 November 2017

spotlight | Sagar Cement

Exhibit 9: Mattampally plant gross realization (INR/t)

Overall Average

Andhra Pradesh

Outside Andhra Pradesh

Exhibit 10: Mattampally plant gross realization (INR/t)

Mattampally Plant Gross Realization 1QFY18

Source: MOSL, Company

Exhibit 11: Gudipadu plant gross realization (INR/t)

Overall Average

Andhra Pradesh

Outside Andhra Pradesh

Exhibit 12: Gudipadu plant gross realization (INR/t)

Gudipadu Plant Gross Realization 1QFY18

Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Andhra

Pradesh

Karnataka

Tamil Nadu

Kerala

Pondicherry

Source: Company, MOSL

Exhibit 13: Capturing southern Orissa through acquisition of Bayyavaram plant

Source: MOSL, Company

30 November 2017

spotlight | Sagar Cement

Increasing capacity by ~35% over next 18 months at

~USD20/t



SGC is likely to raise its capacity by ~35% over the next 18 months by increasing

capacity of the Bayyavaram grinding unit from 0.3mt to 1.5mt at an incremental

capex of INR1.75b. The expansion will be completed by September 2018.

Additionally, it will increase capacity of the BMM plant by 0.25mt, which will

take its capacity to ~5.8mt by end-FY19 at an estimated capex of INR 250mn.

This translates into capex of ~USD20/t, which is at a significant discount to

industry average of USD100/t.

Exhibit 14: Capacity addition at significant discount to industry

Capex cost (INR b)

Capacity to be added (mt)

1 USD

Capex/ t (in USD/t)

2.0

1.5

INR65

Source: MOSL, Company

Capacity expansion planned amid industry downcycle



The company added capacity at a CAGR of 5% over FY11-16, while demand

remained flat. Thus, utilization was around 57% during this period.

However, FY17-21 would see limited capacity addition, and demand is expected

to revive on account of political stability, more infrastructure projects, low-cost

housing projects, and NHAI and metro projects.

Exhibit 15: Expect demand revival in south

Source: MOSL, Company

30 November 2017

spotlight | Sagar Cement

Exhibit 16: Robust and well-thought-out expansion plan

Source: MOSL, Company

Vision to double every 10 years



The company has a strategic vision to reach capacity of 6mtpa by FY20 by

ramping up production at the acquired units.

It also plans to add PSC in its product portfolio at SC(R).

Exhibit 17: Vision to double every ten years

30 November 2017

spotlight | Sagar Cement

Cost curve to improve over FY17-FY19



SGC’s cost curve is likely to improve over the next 12-18 months, primarily led by

lower power & fuel and freight costs.

Power & fuel cost/t is likely to decline on stabilization of 6MW of WHRS and

commencement of the 18MW thermal power plant at the Mattampally unit.

Freight cost/t is likely to decline due to lead distance reduction on account of scaling

up of capacity at the Bayyavaram unit, which will cater to the eastern markets.



SGC completed commissioning of 6MW WHRS in Mattampally and 1MW of solar

power plant in 2QFY18. Stabilization of WHRS is likely to reduce the cost curve

for the company in 2HFY18.

25MW of thermal capacity is available at the BMM plant, which is also used for

fulfilling power requirement at the Mattampally plant at INR5.5/unit. The

expanded Vizag unit will also require 8-9MW of power, which will be served by

BMM at INR4.5/unit. This is at a discount to grid tariff of INR6/unit. SGC’s power

& fuel cost reduced by 8% in the last six quarters, despite a 53% increase in

petcoke prices.

Additionally, commissioning of the 18MW thermal power plant in Mattampally

unit will reduce its cost of power from INR6/unit to INR3.5/unit, could

potentially reduce power cost/t by INR200 for the Mattampally unit.

Location

Mattampally

Gudipadu, AP

Capex in mn

652

994

Status



Commissioned

Commissioning by Dec 2018

Commissioned

Exhibit 18: SGC’s captive power capacities

Capacity (MW)

Sagar Cement WHRS

Sagar cement -Thermal plant

Sagar cement solar plant

SC(R) Thermal plant

Total

Source: MOSL, Company

Exhibit 19: Power & fuel cost reduced by 8% in last six quarters, despite 53% increase in

petcoke prices

Power and Fuel cost (Rebased to 100)

140%

Petcoke prices (Rebased to 100)

151%

137%

153%

131%

100%

91%

85%

Q3FY17

78%

Q4FY17

85%

Q1FY18

92%

Q1FY17

Q2FY17

Q2FY18

Source: Company, MOSL



The Mattampally plant uses 100% petcoke, while the BMM plant uses imported

coal.

Cost differential between petcoke and imported coal is ~17% (petcoke cheaper

than imported coal).

In view of this, SCL is ramping up the usage of petcoke at BMM.

30 November 2017

spotlight | Sagar Cement

Exhibit 20: Cost comparison of coal and petcoke

Price in INR/kcal

Imported coal

Domestic coal

Petcoke

1.2

1.3

Source: Company

Exhibit 21: Higher usage of international coal at BMM (%)

International

99.6

0.4

Domestic

Q3FY16

Q4FY16

Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q2FY18

Source: MOSL, Company

Exhibit 22: Cost trend of international and domestic coal

Imported coal average cost (Rebased to 100)

Indigenous average cost (Rebased to 100)

108%

107%

91%

74%

106%

85%

113%

102%

87%

93%

111%

96%

99%

98%

99%

134%

140%

125%

100%

Source: Company, MOSL

30 November 2017

spotlight | Sagar Cement

Freight cost to reduce led by lower lead distance



Post the commissioning of the railway siding in 4QFY16, SGC’s transport through rake

has been on an increase. This will help SCL to reduce its dependence on road and

improve its reach to profitable markets.



Capacity increase at the Bayyavaram unit will reduce lead distance further to the

eastern markets, resulting in lower freight cost.

Freight cost to reduce with railway siding



SCL set up a railway siding at its Mattampally unit in 4QFY16 to cater to the far-

off markets of Kerala, Assam, Bangalore and Orissa at a capex of INR1.23b. This

could potentially result in annual savings of INR100-120m in freight cost for SCL.

Exhibit 24: Freight cost/t should decline going forward

(INR/tonne)

1,000

1,032

700

Freight cost/ton

730

737

Exhibit 23: Expect increased transport through rail

ROAD

99%

96%

Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q2FY18

98%

99%

98%

RAIL

897

98%

FY12

FY13

FY14

FY15

FY16

FY17

Source: MOSL, Company



Source: MOSL, Company



Acquisition of the BMM plant has also reduced the lead distance to Tamil Nadu

and Kerala. These markets accounted for 33% of SCL’s revenue in FY17, as

against 21% in FY13.

Effective lead distance has reduced from 600km to 450km after the acquisition

of the BMM unit.

Exhibit 25: Reduction in lead distance through BMM acquisition (Lead distance in km)

Before BMM acquisition

After BMM acquisition

825

520

650

300

700

1300

Tamil Nadu

Karnataka

Kerala

Source: Company, MOSL

30 November 2017

spotlight | Sagar Cement

Trades at a significant discount to peers

Available at discount to peers:

SGC intends to double capacity every 10 years

through low cost brownfield expansion and debottlenecking projects given it has

access to large limestone reserves. This is likely to structurally improve its return

ratios. We believe given the prospects of strong sustainable growth, SGC is

attractively priced at EV/t of ~USD60-65 – a significant discount to replacement cost

of USD110/t.

Exhibit 26: EV/t of USD60 on FY19E is at a discount to peers

Capacity

(mt)

Sagar Cement *

Sanghi*

Heidelberg*

Orient Cement

JK Lakshmi Cement

JK Cement

Birla Corporation

India Cement

Ramco Cements

Dalmia Cements

4.3

4.1

5.4

8.0

10.9

12.3

15.4

16.0

17.0

25.0

EV/ton

FY19E

(USD)

124

141

113

110

155

195

discount

Sagar Cement*

-52 Sanghi*

-58 Heidelberg*

-25 Orient Cement

-16 JK Lakshmi Cement

-47 JK Cement

-46 Birla Corporation

-21 India Cement

-62 Ramco Cements

-69 Dalmia Cements

Exhibit 27: EV/EBITDA of 8.4 on FY19E discount to most peers

Capacity

(mt)

4.3

4.1

5.4

8.0

10.9

12.3

15.4

16.0

17.0

25.0

EV/EBITDA

FY19E

(x)

8.4

9.4

12.3

8.8

8.9

9.1

9.9

7.6

12.2

14.4

-11

-31

-4

-5

-8

-15

-31

-42

discount

Source: Company, MOSL, *Bloomberg

30 November 2017

spotlight | Sagar Cement

Financials and valuations

Consolidated - Income Statement

Y/E March

Total Income from Operations

Change (%)

Raw Materials

Manufacturing Expenses

Employees Cost

Other Expenses

Total Expenditure

% of Sales

EBITDA

Margin (%)

Depreciation

EBIT

Int. and Finance Charges

Other Income

PBT bef. EO Exp.

EO Items

PBT after EO Exp.

Total Tax

Tax Rate (%)

Reported PAT

Adjusted PAT for other income

Change (%)

Margin (%)

*Standalone

Y/E March

Equity Share Capital

Total Reserves

Net Worth

Total Loans

Deferred Tax Liabilities

Capital Employed

FY12*

6,691

22.8

670

2,324

266

2,304

5,564

83.2

1,127

16.8

259

868

342

120

646

205

31.7

441

153

6.6

FY13*

7,212

7.8

596

2,657

230

3,307

6,790

94.2

422

5.8

267

155

306

260

109

19.7

-80

1.2

FY14*

5,611

-22.2

536

2,292

253

2,282

5,363

95.6

248

4.4

269

-21

296

178

-138

118

-85.2

-256

P/L

-4.6

FY15*

6,351

13.2

572

2,619

335

2,229

5,754

90.6

597

9.4

215

382

231

3,630

3,781

814

21.5

2,966

118

L/P

1.9

FY16

8,624

35.8

1,369

2,929

416

2,679

7,393

85.7

1,231

14.3

347

884

419

506

12.5

443

274

5.1

FY17

9,416

9.2

1,045

3,604

431

3,233

8,312

88.3

1,104

11.7

476

628

621

192.9

-39

P/L

-0.4

FY18E

11,939

26.8

1,324

4,418

547

3,867

10,156

85.1

1,784

14.9

499

1,285

647

712

235

33.0

477

L/P

4.0

(INR Million)

FY19E

14,769

23.7

1,638

5,465

676

4,428

12,207

82.7

2,562

17.3

545

2,017

647

1,444

476

33.0

967

103

6.5

Consolidated - Balance Sheet

FY12*

174

2,423

2,597

2,078

446

5,121

4,909

1,475

3,434

860

2,265

857

485

897

1,507

641

655

211

758

5,121

FY13*

174

2,491

2,664

2,244

446

5,354

5,135

1,729

3,406

215

860

2,446

652

533

246

1,015

1,574

536

924

113

873

5,354

FY14*

174

2,235

2,409

2,050

322

4,781

5,346

1,995

3,351

401

860

2,062

418

485

1,113

1,892

461

1,227

204

169

4,781

FY15*

174

5,039

5,213

2,453

475

8,141

5,548

2,214

3,334

1,122

5,515

623

581

2,193

2,118

1,830

750

659

421

3,685

8,141

FY16

174

5,317

5,491

4,343

9,851

11,853

2,668

9,185

387

152

2,743

905

809

964

2,619

1,324

972

323

124

9,851

FY17

204

7,426

7,630

4,866

12,549

12,757

3,139

9,618

387

553

4,524

1,104

808

1,705

908

2,536

1,478

1,008

1,988

12,549

FY18E

204

7,866

8,070

4,866

12,990

13,800

3,638

10,162

387

711

4,874

1,348

1,025

1,350

1,151

3,148

1,805

1,278

1,726

12,990

(INR Million)

FY19E

204

8,796

9,000

4,866

13,920

15,118

4,183

10,936

387

892

5,533

1,621

1,268

1,221

1,423

3,830

2,170

1,581

1,702

13,920

Gross Block

Less: Accum. Deprn.

Net Fixed Assets

Goodwill on Consolidation

Capital WIP

Total Investments

Curr. Assets, Loans&Adv.

Inventory

Account Receivables

Cash and Bank Balance

Loans and Advances

Curr. Liability & Prov.

Account Payables

Other Current Liabilities

Provisions

Net Current Assets

Appl. of Funds

E: Bloomberg Estimates;*Standalone

30 November 2017

spotlight | Sagar Cement

Financials and valuations

Ratios

Y/E March

Basic (INR)

Adj EPS

Cash EPS

BV/Share

DPS

Payout (%)

Valuation (x)

P/E

Cash P/E

P/BV

EV/Sales

EV/EBITDA

Dividend Yield (%)

Return Ratios (%)

RoE

RoCE

RoIC

Working Capital Ratios

Asset Turnover (x)

Debtor (Days)

Creditor (Days)

Leverage Ratio (x)

Current Ratio

Interest Cover Ratio

Net Debt/Equity

FY12*

21.6

34.3

127.3

2.6

13.8

FY13*

4.3

17.4

130.6

0.9

23.3

FY14*

-12.5

0.7

118.1

0.0

FY15*

5.8

16.3

255.6

6.4

5.3

150.2

53.4

3.4

2.8

30.2

0.7

3.1

51.9

7.2

0.8

3.0

1.7

0.0

FY16

21.7

38.7

269.2

5.0

27.7

40.2

22.5

3.2

2.6

17.9

0.6

8.3

9.2

10.7

0.9

1.0

2.1

0.8

FY17

-1.9

21.4

374.0

1.5

N/A

40.7

2.3

2.2

19.0

0.2

-0.6

4.0

4.2

0.8

1.8

1.0

0.4

FY18E

23.4

47.8

395.6

1.5

7.7

37.3

18.2

2.2

1.8

11.9

0.2

6.1

7.2

8.1

0.9

1.5

2.0

0.4

FY19E

47.4

74.1

441.2

1.5

3.8

18.4

11.8

2.0

1.5

8.4

0.2

11.3

10.5

11.9

1.1

1.4

3.1

0.4

0.3

18.3

14.5

14.4

1.3

1.5

2.5

0.5

0.1

3.3

7.0

3.0

1.3

1.6

0.5

0.4

0.0

-10.1

6.2

-1.0

1.2

1.1

-0.1

0.5

Consolidated - Cash Flow Statement

Y/E March

OP/(Loss) before Tax

Depreciation

Interest & Finance Charges

Direct Taxes Paid

(Inc)/Dec in WC

CF from Operations

Others

CF from Operating incl EO

(Inc)/Dec in FA

Free Cash Flow

(Pur)/Sale of Investments

Others

CF from Investments

Issue of Shares

Inc/(Dec) in Debt

Interest Paid

Dividend Paid

CF from Fin. Activity

Inc/Dec of Cash

Opening Balance

Closing Balance

E: Bloomberg Estimates;*Standalone

FY12*

646

259

-3

954

-138

816

-359

457

-359

-423

-35

-458

-1

FY13*

109

267

306

-354

386

-43

344

-386

-42

-385

313

-52

261

219

246

FY14*

-374

269

-1

598

493

-18

475

-571

-96

-571

-87

-17

-104

-200

246

FY15*

3,781

215

-199

3,893

-3,491

402

404

3,665

-1,816

1,852

226

-228

-104

-106

2,147

2,193

FY16

443

347

378

-236

286

1,218

1,289

125

1,413

-1,189

-1,064

1,500

-3,303

-401

-148

-2,353

-2,128

2,193

FY17

-39

476

595

-53

-58

921

1,010

1,017

-1,462

-1,454

2,218

438

-571

2,085

1,640

1,705

(INR Million)

FY18E

712

499

573

-235

-93

1,456

-1,200

256

-1,126

-647

-37

-684

-354

1,705

1,350

FY19E

1,444

545

573

-476

-105

1,981

-1,500

481

-1,426

-647

-37

-684

-129

1,350

1,221

30 November 2017

spotlight | Sagar Cement

NOTES

30 November 2017

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spotlight | Sagar Cement

Disclosure of Interest Statement

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Sagar Cement

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30 November 2017