NCL Industries reported a weak set of Q2 numbers. Margins were under pressure and were down at 14.78 percent versus 23.09 percent for the same quarter last fiscal. The year-on-year profit after tax was down at 28 percent at Rs 30.7 crore versus Rs 42.90 crore. However, YoY revenues were up 19 percent at Rs 415 crore versus Rs 348 crore.

To discuss the earnings fineprint and the outlook, CNBC-TV18 caught up with K Ravi, MD at NCL Industries. He said they are on track to achieve the 2.6 million tonne sales volume and expect EBITDA per tonne at Rs 940 per tonne in the second half of FY22.

At the end of the second quarter, the company clocked EBITDA per tonne of Rs 865.

On price hikes, he said the company has managed to push Rs 30 per bag hike, which has managed to take of the immediate input cost pressures because the coal prices are down from Rs 20,000 per tonne to around Rs 10,000 per tonne. Although they had attempted to increase prices by Rs 50 per bag but kept the hike at Rs 30 per bag.

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"So with that, I think the present market and the present price are good enough," he said.

He also clarified that they had examined the Andhra Cement asset but are not in the race now because the debt burden there could have been too much for this company. So, they have dropped out of this proposal now, he added.

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On Capex, he said the company has already spent a considerable amount and would spend another Rs 150 crore in this financial year.

For more, watch the video