KEI Industries, electrical cable and wire manufacturing company, is completely hedged towards changes in raw material costs, said Anil Gupta, CMD of the company, on Thursday.

Speaking in an interview to CNBC-TV18, he said, “Retail sales are regularly passed on every 15-20 days. We take out the average of copper and readjust our list prices to the dealers and the distributors. Therefore, as far as projects are concerned where it is a tendering business, 50-60 percent of the contracts are on variable basis, so we get the price variations on the raw materials.

"In rest of the contracts whatever copper or aluminium is involved we book and keep stock in our factories and are completely hedged. So we are free from commodity risk from all ends," said Gupta.

Talking about margins, he said, “It will not be impacted at all because we are completely hedged and have our copper positions with respect to our order book."

Gupta said that fresh concerns around the COVID-19 have not impacted demand. "I do not see any let up in the demand and there is no impact of the fresh COVID-19 lockdowns from any quarters. We are hopeful that we will be able to achieve in Q4 near about last year’s Q4 revenues. And in the next financial year, we expect a substantial growth considering our present order booking of Rs 2600 crore. Therefore, we expect to grow by 15-20 percent in the next financial year,” he said.

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(Edited by : Priyanka Rathi)