Gujarat Alkalies and Chemicals’ profits in Q3 nearly halved on a quarter-on-quarter (QoQ) basis. Margins too contracted for the company.

GS Paliwal, Executive Director-Marketing of the company said that there is margin pressure on the business in chlor-alkali. However, he said that value added products are doing well.

“If you look at the chlor-alkali business, globally it is under pressure. However, in India, the prices are aligned with global market prices. So, there is margin pressure on our business in chlor-alkali. The value-added products definitely we have been doing fairly well. So, we hope that in the next few quarters things will be alright in our businesses,” he said in an interview to CNBC-TV18.

He said that caustic soda prices have recovered and improved in January 2021 as well.

“The caustic soda prices at the fag end of Q3 has shown some recovery and the momentum is continued in January and February as well. We definitely foresee that as COVID impact is getting neutralized by vaccination and all, major sector like textile and paper industry are on a recovery path. So, there is a growth in the market in these particular segments. We foresee very good momentum in coming days in these sectors,” he said.

On the chloromethane project, he said that it will add around Rs 400 crore to topline.

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(Edited by : Abhishek Jha)