Company’s total income grew by 5% to Rs.257.7 crore in second quarter of FY16
Financial Highlights (Rs Crore)
February 11, 2016: Sanghi Industries Ltd, one of Gujarat’s leading cement producers, reported a stunning 276% rise in net profit to Rs. 26.8 crore in the second quarter ending December 31, 2015 as against Rs 7.1 crore in the corresponding quarter of last year. The Company’s total income for the second quarter rose 5% to Rs. 257.7 crore as against Rs. 244.3 crore in the same quarter of last year.
The Company reported EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of Rs. 53.1 crore compared to Rs. 37.3 crore in corresponding quarter of last year. For the first half of financial year 2016; the Company’s total income stood at Rs. 475.1 crore against Rs. 425.1 crore in first half of last year. Net profit in the first half rose to Rs.29 crore compared to Rs. 9 crore in the corresponding half year of last year.
Commenting on the performance, Mr. Alok Sanghi, Director, Sanghi Industries Ltd. said, “Despite lacklustre demand, the Company has been able to achieve good revenue growth due to geographical expansion. We expect revenue growth to improve in next two quarters as our new grinding unit is operational. Coastal shipping is the major focus area for the Company as of now as through coastal route, we can reach markets that are far off from Gujarat. It also helps in maintaining our profitability in the long run. The Company’s power and fuel cost per tonne reduced substantially due to drop in coal and lignite prices thereby further fuelling increase in EBIDTA”
Mr. Sanghi said uptick in demand is expected from infrastructure projects as stalled projects are getting cleared and executed. “Domestic demand-supply scenario is likely to remain skewed in the favour of overcapacity for next two years. However, with demand from government projects rising, we expect this gap to narrow down. Going forward, we also expect higher margin as coastal shipping is likely to reduce our overall transportation cost, ” Mr. Sanghi said.
About Sanghi Industries Limited:
Sanghi Industries Limited has emerged as a major cement player in western India over the last few years. Company’s 4 million tonnes per annum capacity plant in the Abdasa taluka of Kutch district in Gujarat is ranked as one of the largest cement plants at one location in India. It is one of the top 3 players in Gujarat and is now increasing its presence in Maharashtra and Rajasthan.
Sanghi Industries has several firsts to its credit: first plant in India to install cross belt analyzer for micro analysis of limestone to ensure consistent superior quality of cement. First to install stacker and reclaimer for uniform homogenizing of each raw material and the first plant to have 100% robotic control systems to ensure consistently superior strength and quality of operations. It is only Indian Cement Company to achieve Export House status in the first eight months of commencement of operations. First company in India to have a full fledged captive infrastructure, from day one, such as Power Plant, Water Desalination Plant , own jetty and mines to cater the needs of sea route transportation and road network and other various needs.