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Shree Cement expects double-digit demand; eyes price hike to offset fuel cost

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Shree Cement expects double-digit demand; eyes price hike to offset fuel cost

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“Demand is very good and when compared to last year, the base was not as strong. So demand will definitely be in double-digit,” HM Bangur, managing director (MD) of Shree Cement, told CNBC-TV18.

Cement demand is strong and it will continue to be in double-digits, HM Bangur, managing director (MD) of Shree Cement, told CNBC-TV18.
The company reported earnings for the September-ended quarter. Profit and margin came in above Street estimates and the weak volumes were offset by better realisations.
“Demand is very good and when compared to last year, the base was not as strong. So demand will definitely be in double-digit,” Bangur said.
However, he said, the sales volumes in FY22, will be around 28 million tonne as guided earlier. “Demand was low not because of seasonality but there was a transport strike in Chhattisgarh and all the players in the region were suffering. Chhattisgarh was supplying clinker to our eastern grinding units; it was stopped at that time, but now everything is clear and business is as usual with good demand,” said Bangur.
On price, he said, “We have taken price hikes in October but it’s not sufficient to cover the abnormal fuel costs. So the realisation has to increase otherwise even the present cost will not be covered, so price increase will gradually take place.”
According to him, the company will do inorganic growth but at the right price. “We will look at inorganic growth only at the right price and we cannot be sure about any company when we do not find value in it. However, we are open to this but it doesn’t mean we are rushing into it,” Bangur said.
For the entire management interview, watch the video
 
 
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