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Gujarat Heavy Chemicals Q4FY21: EBITDA jumps 20%; mgmt says will sustain current margins

Updated : April 29, 2021 02:26:21 IST

Gujarat Heavy Chemicals (GHCL) is trading higher post its Q4FY21 earnings. The company reported a 12 percent growth in revenues and a 20 percent jump in EBITDA.

Speaking to CNBC-TV18, RS Jalan, Managing Director of the company, said the overall demand is good.

“In terms of demand, flat glass industry is doing very well. Bottle glass is slightly lagging and detergent is at pre-COVID levels. Chemicals are also doing good. So, overall entire demand is doing good,” he said.

He said that the revenues were at pre-COVID levels. “If you look at our year as a whole, we have dropped roughly around Rs 400 crore of revenue because of the COVID situation. First six months were bad, and after that we were able to come to the pre-COVID level. My estimate is this turnover should be in the range of around Rs 3,300-3,400 crore which is almost better than the pre-COVID levels,” he said.

He also expects to sustain the current margin levels. “Prices of soda ash is at rock bottom. There should be an upward movement from here. Import of soda ash has also come down in India and the overall demand of soda ash is better. So, all put together the overall consumption of the domestic production will be better this year. Textile will also do good. So, my belief is we will be able to sustain the current margins,” he said.

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