Kalyani Steels reported a consolidated profit of Rs 75.68 crore in the fourth quarter of the financial year 2021, steeply higher than Rs 22.66 crore in the previous year. While its revenue from operations has surged 39 percent year-on-year, its margins have also expanded significantly.
RK Goyal, MD of Kalyani Steels discussed the earnings and the big rise in steel prices.
Goyal says the company has witnessed a big impact in the current quarter in terms of sales volume due to the second wave of COVID-19. However, he expects to "make it up in May and June. So I don’t see much impact or substantial impact on the volumes and margins going forward,” he said.
Kalyani Steels is targeting to maintain a 27 percent margin delivered in Q4FY21, he added.
In the last three quarters, the company was able to utilise 100 percent of its capacity. “We are able to improve our profits as we are able to pass on the cost increase in raw materials to our customers. If the same thing continues, our margins will continue to remain strong,” he shared.
In terms of the production-linked incentives (PLI) scheme, he said, “We have applied and we are eligible for almost all parts of alloy steels. We are ready to invest additional money.”
For a full interview, watch the video.
(Edited by : Yashi Gupta)
First Published: IST