Sahyadri Industries Limited , a pioneer in building solutions, has reported its financial results for the first quarter, showcasing resilience amid challenging market conditions.

Financial Performance

The company reported a total income of ₹216.10 crore for Q1, marking a slight decline of 0.80% year-over-year but a significant increase of 41.60% quarter-over-quarter. The earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹21.70 crore, with a margin of 10.10%. While this represents a 12.70% decrease year-over-year, it shows a robust 56.70% growth compared to the previous quarter.

Profit after tax (PAT) for Q1 was reported at ₹10.80 crore, declining 13.80% year-over-year but surging by an impressive 152.20% quarter-over-quarter.

Operational Highlights

Sahyadri Industries demonstrated improved operational efficiency, with capacity utilization increasing to 93% in Q1, up from 89% in the same quarter of the previous year. This improvement in utilization rates indicates the company's ability to optimize its production capabilities despite market challenges.

Management Commentary

Mr. Satyen Patel, Managing Director of Sahyadri Industries Limited, commented on the results, stating, "The business has delivered a steady performance during the quarter. This performance was partly affected by weak demand and ongoing pricing pressures." He added that the growth outlook for the roofing sector remains positive, subject to geopolitical situations.

Expansion Plans

Sahyadri Industries is actively pursuing expansion strategies to strengthen its market position:

1. The company is setting up a new manufacturing unit in Orissa for asbestos corrugated sheets with a capacity of 120,000 MTPA.
2. Another unit is planned in Maharashtra for non-asbestos cement boards with a capacity of 72,000 MTPA.
3. Both projects require an investment of ₹95 crore each and will be funded through a combination of internal accruals and debt.

These expansion initiatives aim to cater to unrepresented markets in Eastern India (Orissa, Jharkhand, West Bengal, and Bihar) and to expand the company's presence in Western and Northern India, as well as boost export capabilities.

Market Outlook

Despite the challenges faced in Q1, Sahyadri Industries remains optimistic about the future. The company believes it is well-positioned to leverage the positive growth outlook in the roofing sector, supported by its improving capacity utilization and strong emphasis on sustainability.

As Sahyadri Industries continues to navigate through market pressures and expand its operations, investors and industry observers will be keenly watching the company's performance in the coming quarters.

Sahyadri Industries , a prominent player in the building materials sector, has released its financial results for the first quarter, revealing a mixed performance. The company, known for its innovative building solutions, faced challenges in maintaining year-over-year growth but showed signs of recovery on a sequential basis.

Financial Highlights

All financial figures in ₹ crores, except EPS in ₹

Segment Performance

Sahyadri Industries operates in two key segments:

1. Building Materials: This segment generated revenue of ₹212.25 crores, forming the bulk of the company's income.
2. Power Generation: The power generation segment contributed ₹4.16 crores to the total revenue.

Expansion Plans

The company is actively pursuing growth opportunities:

• A new Asbestos Corrugated Sheet unit with a capacity of 1,20,000 MT is being set up in Odisha.
• Plans are underway for a 72,000 MT Non Asbestos Cement Boards plant in Maharashtra, with land acquisition in progress.

Auditor's Review

The statutory auditors have conducted a limited review of the financial results and issued an unmodified review report, affirming the accuracy of the financial statements.

Market Implications

The mixed results reflect the challenging business environment. While the year-over-year decline in profits may concern some investors, the sequential improvement suggests that Sahyadri Industries is navigating market challenges effectively. The ongoing expansion projects demonstrate the company's commitment to growth and diversification.

Investors and market analysts will likely keep a close eye on how these expansion projects unfold and their potential impact on future quarters' performance. The building materials sector's performance, closely tied to construction and infrastructure development, will continue to be a key factor in Sahyadri Industries' growth trajectory.