After Kotak came out with a note saying that prices in South India have fallen 7 percent month-on-month and 4 percent all over India, cement stocks have been on the radar. To know more about the price outlook and demand, CNBC-TV18 caught up with K Ravi, MD, NCL Industries.

He said, “The price on month-on-month basis has been lower by Rs 10-15 per bag. The demand is also slightly down because of the non-availability of sand in this part of the country since all the rivers are overflowing. Therefore, sand is not available and demand is less, which brought down the prices marginally month-on-month. Quarter-on-quarter prices on an average are down by almost Rs 25 per bag.”

On volumes, Ravi said that they would be able to touch 2.5 million as guided but the EBITDA per tonne may be around Rs 600-800 per tonne and not Rs 1100 per tonne as guided earlier because coal prices have gone up sharply this month. He mentioned that unless coal prices come down, the EBITDA per tonne will also go down. The EBITDA per tonne for the company would be down by around 30-35 percent for the year. However, the EBITDA per tonne for the first quarter was around Rs 1000 per tonne.

On cost-saving measures like waste heat recovery (WHR) system, which could likely cushion the contraction in EBITDA per tonne, Ravi said, “In the first quarter, we got a saving of almost Rs 5 crores. In the second quarter, it could be slightly better than that, maybe Rs 6 crores. Not only WHR, but we will also be saving considerably on account of solar power as well. Rs 25 crore per annum saving is possible.”

For the entire interview, watch the video

(Edited by : Dipika Ghosh)