Andhra Cements Limited, formerly known as Andhra Cement Company Limited, was incorporated on December 9, 1936, making it one of the pioneer cement manufacturing companies in India. The company operates as a subsidiary of Sagar Cements Limited and is part of the renowned SAGAR Group, manufacturing and marketing cement products under the prestigious "SAGAR" brand, which is recognized as one of the leading cement brands in the country.
The company is headquartered in Dachepalli, Andhra Pradesh, and has established itself as a significant player in the Indian cement industry. As one of the first generation cement plants established in Andhra Pradesh, Andhra Cements has undergone several changes in management and promotion over the years while maintaining its position in the cement manufacturing sector. The company is publicly traded on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Andhra Cements Limited is engaged in the manufacture and sale of cement and cement-related products, with its primary product portfolio including Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC) grade cement. The company derives the majority of its revenue from the Indian market, serving construction companies and infrastructure projects across the country.
The company's manufacturing journey began with its first unit commissioned in Vijayawada in 1940, which was later expanded in three stages during 1951, 1958, and 1970. By 1987, the total cement production capacity reached 2.4 lakh tonnes per annum. Additionally, the Vizag Cement Works commenced production in November 1979, and the company obtained a letter of intent to produce 2.5 lakh tonnes per annum of cement at the Durga Cement Works in Nadikude.
However, the company faced significant operational challenges in recent years. The company experienced financial and operational crises for an extended period, with cement production activities being stopped and both manufacturing units shut down from February 2020 to March 2023. Following the implementation of a resolution plan, the company recommenced its plant operations and grinding operations from April 2023 at its Sri Durga Cement Works (Dachepalli unit, Guntur District).
As of the latest available data, Andhra Cements Ltd has a market capitalization of ₹533 crores. The promoter holding in the company stands at 90.00% as of March 2025, remaining stable from the 90.00% holding as of June 2024. This high promoter holding indicates strong management control and commitment to the company's operations.
The stock has experienced significant volatility, with a 52-week high of ₹110.50 and a 52-week low of ₹48.25. The share price performance shows mixed trends: a 3.83% increase over the last month, an 8.08% decline over three months, and a 36.51% decrease over the past 12 months, while demonstrating remarkable long-term growth of 557.81% over the last three years.
#### Q4 FY25 Financial Results
The company's recent financial performance reflects the challenges it has faced during its operational restart phase. For Q4 FY25, Andhra Cements reported revenue of ₹89.16 crores, representing a 10.21% decline compared to the same period in the previous year. However, on a quarterly sequential basis, the company showed encouraging signs with a 30.58% jump in revenue compared to the previous quarter.
The company reported a net loss of ₹49.91 crores in Q4 FY25, compared to a net loss of ₹18.78 crores in Q4 FY24, representing a significant deterioration of 165.76%. The net profit margin stood at -55.98% in Q4 FY25, reflecting the operational challenges and costs associated with restarting operations.
#### Annual Performance FY25
For the full financial year 2025, the company reported a net loss of ₹152.11 crores compared to a net loss of ₹65.61 crores in FY24. However, there was a marginal improvement in sales, which rose by 2.22% to ₹274.05 crores in FY25 from ₹268.11 crores in the previous year.
#### Key Financial Ratios
- Q4 FY25 Revenue: ₹89.16 crores (down 10.21% YoY, up 30.58% QoQ)
- Q4 FY25 Net Loss: ₹49.91 crores (vs. ₹18.78 crores in Q4 FY24)
- FY25 Net Loss: ₹152.11 crores (vs. ₹65.61 crores in FY24)
- FY25 Revenue: ₹274.05 crores (up 2.22% YoY)
- Net Profit Margin (Q4 FY25): -55.98%
- P/E Ratio: -3.45
- P/B Ratio: 1.77
- Earnings Per Share (EPS) (12-month): -$0.20 (approx. -₹16.5)
- Market Capitalization: ₹533 crores
- Promoter Holding: 90.00%
In the cement sector, Andhra Cements competes with other regional players including Saurashtra Cement, NCL Industries, Shiva Cement, Anjani Portland, Shri Keshav, and Kakatiya Cement. The company benefits from being part of the SAGAR Group, which provides brand recognition and operational synergies within the broader cement portfolio.
The Indian cement industry continues to show resilience and growth potential, driven by infrastructure development, housing demand, and government initiatives. Andhra Cements' primary clients include construction companies and infrastructure projects across India, positioning it to benefit from the country's ongoing development activities.
Andhra Cements Limited represents a traditional cement manufacturer with deep industry roots, currently navigating through a challenging operational restart phase. While the company faces near-term financial pressures due to the costs associated with resuming operations after a three-year shutdown, its strong promoter holding, established brand association with the SAGAR Group, and strategic location in Andhra Pradesh provide a foundation for potential recovery. The company's ability to stabilize operations at its Dachepalli unit and potentially restart its Vizag facility will be crucial factors in determining its future financial performance and market position.
