Sarda Energy and Minerals on Monday said the company expects margins at around 23 percent in FY19.

In an interview to CNBC-TV18, Padam Jain, director and chief financial officer, said that pellet prices have moved to Rs 7,300 per tonne against Q1 of FY19 average of Rs 5,900 per tonne.

Jain further said that sponge iron prices have moved to Rs 23,000 per tonne against Q1 of FY19 of Rs 19,000 per tonne.

According to him, pellet and sponge prices will sustain at the current levels.

Talking about price rise, Jain said, “There are substantial exports from India that has created demand for pellet.”

Sarda Energy and Minerals posted a good set of earnings this quarter. The net sales of the company rose in Q1, while operating profit saw a jump of 66 percent.