Sagar Cements margins pressured on cost spiral

Mumbai : Sagar Cements Ltd, the Hyderabad-based mid-sized cement manufacturer that is setting up a 5.5 million tonne cement plant with French major Vicat, sees margins under pressure on rising input costs and weakening demand. The company is also wary of excess capacities in the sector leading to a glut situation.

S Sreekanth Reddy, executive director of the company said, “The average fuel cost per tonne of clinker production went up to Rs801 a tonne from Rs655 last year primarily due to rise in coal costs. Similarly, the freight cost for June quarter rose to Rs23.3 crore from Rs16.4 crore a year ago on account of rise in diesel prices and also increase lead distances.”