Sanghi Industries sinks deeper into debt with Q2 loss
Sanghi Industries posted second-quarter revenue gains but extended its losing streak to seven consecutive periods as debt costs consumed operating earnings. The Adani Group cement manufacturer reported net sales of 284.93 crore rupees for the three months ending in September, climbing 88 percent from the year-earlier quarter. Operating profit reached just 24.87 crore rupees while interest payments totaled 52.90 crore rupees, exceeding operational earnings by more than double.
The Gujarat-based producer operates the largest single-location cement facility globally yet carries long-term borrowings of 2,485 crore rupees as of March, yielding a debt-to-equity ratio of 4.06. Six-month losses hit 191.95 crore rupees despite sales growth of 41 percent to 530.31 crore rupees. Operating margins contracted to 8.73 percent from 10.36 percent in the prior quarter.
Return on equity stood at negative 65.93 percent in recent months, while return on capital employed registered negative 4.89 percent. Shares traded at 65.24 rupees on Friday before the results announcement. The company generated a negative operating cash flow of 248.55 crore rupees during the last fiscal year.
