Pellet prices are at 4-year high on the back of strong demand. Dinesh Gandhi, director at Godawari Power & Ispat, spoke to CNBC-TV18 about the ongoing trends in the iron ore industry and outlook.

"The current prices have shot to Rs 8,500 per tonne in Chattishgarh and to Rs 7,500/tonne in Odisha. The uptick in current prices compares to an average realisation of Rs 6500/tonne in the first quarter," said Gandhi.

"The overall realistation would be better because of surge in prices," he said, adding that ,"the impact of higher prices will be seen in Q3FY19 because in current quarter order backlog will be brought on track".

"The operating margins are also expected to go from 28 percent to 30 percent in FY19 because of hike in pellet prices and revenue growth would be over 20 percent in the current fiscal," said Gandhi.