Sanghi Industries net profit up 276% to Rs.26.8 crore in Q2FY16

The Company’s total income for the second quarter rose 5% to Rs. 257.7 crore as against Rs. 244.3 crore in the same quarter of last year.

 

The Company reported EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of Rs. 53.1 crore compared to Rs. 37.3 crore in corresponding quarter of last year. 

 

For the first half of financial year 2016; the company’s total income stood at Rs. 475.1 crore against Rs. 425.1 crore in first half of last year. Net profit in the first half rose to Rs.29 crore compared to Rs. 9 crore in the corresponding half year of last year.

 

Commenting on the performance,  Alok Sanghi, Director, Sanghi Industries Ltd. said, “Despite lacklustre demand, the Company has been able to achieve good revenue growth due to geographical expansion. We expect revenue growth to improve in next two quarters as our new grinding unit is operational. Coastal shipping is the major focus area for the Company as of now as through coastal route, we can reach markets that are far off from Gujarat. It also helps in maintaining our profitability in the long run. The Company’s power and fuel cost per tonne reduced substantially due to drop in coal and lignite prices thereby further fuelling increase in EBIDTA.”

 

Sanghi said uptick in demand is expected from infrastructure projects as stalled projects are getting cleared and executed. 

 

“Domestic demand-supply scenario is likely to remain skewed in the favour of overcapacity for next two years. However, with demand from government projects rising, we expect this gap to narrow down. Going forward, we also expect higher margin as coastal shipping is likely to reduce our overall transportation cost, ”  Sanghi said.