Shree Digvijay Cement in its Q3 earnings saw margins of close to around 18.5-19 percent. Anil Singhvi, Executive Chairman of the company, said that he expects margins to improve hereon as they are focusing on reducing power costs.

"Going forward our margins will improve largely on account of cost. Cement industry is more power and fuel dependent and our power cost will come down for all the quarters now. So, I think we should see in excess of 20 percent of EBITDA margins going forward from here," he said in an interview to CNBC-TV18.

Singhvi said they are trying to optimize production and expects to produce 1.3-1.4 million tonne cement going forward. "We will try and optimize our production. Our clinker production has gone up substantially in the last couple of months after we took some repairing jobs in September. Going forward, I would plan to have almost about 1 million tonne of clinker which should theoretically give me 1.3-1.4 million tonne of cement production. So I believe that today we are at about 1 million tonne this year in terms of our production and sale i.e. 2021, but going forward I think we should have a 20 percent CAGR easily achieved from the same plant for at least next few years," he said.

He expects the company to have a healthy balance sheet by March 2021. "By March 2021 we should have a very healthy cash on balance sheet which will afford us to look at organic growth or inorganic growth. So, going forward I see this company giving a 20 percent topline growth and improving the margins from here on,” he said.

Singhvi also clarified that they were not in talks with Sanghi Industries.

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(Edited by : Priyanka Rathi)

First Published:Jan 28, 2021 1:30 PM IST