Gujarat-based Shree Digvijay Cement on Wednesday said the company is eyeing EBITDA (earnings before interest, taxes, depreciation)

per tonne of Rs 1,100-1,200 from the third-quarter onwards.

The company posted a net profit of Rs 13.4 crore against Rs 2.5 crore for the same quarter last fiscal. The year-on-year revenues were up 58.7 percent and EBITDA came in at Rs 27.7 crore against Rs 10.4 crore.

Also Read

: UltraTech Cement Q2 Results: Net profit up 13% at Rs 1,313.5 crore, misses Street estimates

In an interview with CNBC-TV18, Anil Singhvi, executive chairman, said he is hopeful that once the busy season for the cement industry starts next quarter onwards, the margins will see an improvement but the challenger in terms of high energy prices would remain.

According to him, for the cement industry, the monsoon quarter is the leanest in terms of demand and when demand is low, the cost of production is much higher.

Also Read: Shree Cement announces capex in line with target to reach 80 mtpa capacity by 2030

He said, "Although there is general consensus that the cement prices have gone up, in fact, they haven’t kept pace with the increase in the cost of energy prices. Therefore, the cement prices are expected to rise and recover the costs."

The cement prices backed by good demand are expected to rise up, to cover the energy costs and so the margins would not only come back but slightly improve as there would be high productivity, said Singhvi.

For the full interview, watch the video

(Edited by : Jomy Jos Pullokaran)

First Published:Oct 27, 2021 4:44 PM IST