Sanghi Industries Q4FY21 volumes are up 56 percent and margins have also expanded. However, Bina Engineer, Director of the company said that Q1FY22 sales volume will get impacted due to the second wave of COVID-19.
“FY21 as a whole was around 2.15 million tonnes. It was roughly around 10 percent better compared to FY20. Current quarter, April and May have definitely seen the impact of COVID second wave, but we are still maintaining around 40 percent lead over the previous months of April and May 2020,” she said.
However, with construction activity recommencing, volumes are improving in June. The company expects to deliver 40-50 percent year on year growth in volume in Q1FY22 and is hopeful of crossing 3 million tonne volume for FY22.
“June I am expecting to do better. So, we would fairing at least around 40-50 percent better compared to last year. Last year we had done around 3.30 lakh tonne in Q1FY21 and we should cross above 5 lakh tonne in the current quarter (Q1FY22),” she said.
Engineer also said that despite an increase in raw material costs, the company expects to maintain margins at the current levels. “Raw material cost has been very sustainable for us because of the very large limestone reserves which are under surface mining. We don’t have pressures on margin and prices also have remained quite strong during the current quarter compared to the previous quarter. Therefore we expect that the margins are maintainable,” she said.
For the full interview, watch the video.
(Edited by : Abhishek Jha)
First Published: IST