Published On:May 25 2024
Story Viewed 545 Times

Sagar Cements Announces ₹330 Crore Capex for FY25, Prioritizes Cost Optimization

Sagar Cements Announces ₹330 Crore Capex for FY25, Prioritizes Cost Optimization

Sagar Cements has earmarked ₹330 crore for capital investment in the current financial year, according to its Joint Managing Director, Sreekanth Reddy.

“For FY25, the capex is approximately ₹330 crore. Of this, ₹250 crore to ₹270 crore is allocated to the Andhra Cements Plant. The remaining capex will be for a 6-megawatt solar plant at Gudipadu, with around ₹20 crore each for the Jeerabad and Gudipadu sites. The overall FY25 capex numbers are roughly ₹330 crore,” Reddy stated.

The capex planning across the Group is focused on cost optimization rather than growth. Portions of the proposed capex are aimed at modernization and not just increasing volumes. Reddy emphasized that the investments are mainly from a long-term perspective of reducing costs.

In terms of capacity utilization, Sagar Cements generated volumes of about 5.51 million metric tonnes (mn mt) in line with its guidance of closing the year with 5.6 mn mt. “For FY25, we are targeting overall volumes of 6.5 mn mt,” he added.

On the energy front, Sagar Cements is steadily advancing toward green energy. “Our target is to have 50 percent green power in our portfolio by 2030. We are on track to achieve those numbers,” Reddy said.

Sagar Cements ended Q4 of FY24 positively with volume growth of 19 percent and 14 percent for the full fiscal year. “Demand from infrastructure projects and urban real estate remained consistent. We expect the volume trend to sustain in the coming years as we steadily ramp up utilization levels across all our units,” Reddy concluded.

HBL





OUR OTHER PRODUCTS & SERVICES: Projects Database | Tenders Database | About Us | Contact Us | Terms of Use | Advertise with Us | Privacy Policy | Disclaimer | Feedback

This site is best viewed with a resolution of 1024x768 (or higher) and supports Microsoft Internet Explorer 4.0 (or higher)
Copyright © 2016-2024

Technology Partner - Pairscript Software