Sanghi Industries net profit jumps multifold to Rs. 23.85 crore for Q1 ended June 2016
Posted by: Clara Fernandes at 8/12/2016 04:29:00 am
Financial Highlights (Rs Crore)
August 12, 2016: Sanghi Industries Ltd, one of Gujarat’s leading cement players reported a substantial rise in net profit and 2% growth in total income in the quarter ended June 30, 2016.
For the Q1 FY 2016-17, ended on June 30, 2016, company posted net profit of Rs. 23.85 crore against Rs. 25 lakh in the corresponding previous quarter. Total Income for the quarter stood at Rs. 271.20 crore compared to Rs. 265.29 crore in the corresponding previous quarter.
The Company reported EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of Rs.65.45 crore in the Q1 FY 2016-17 compared to Rs. 39.69 crore in the corresponding previous quarter.
Commenting on the Company’s performance, Mr. Alok Sanghi, Director, Sanghi Industries Ltd said, “We are witnessing positive trends in the economy and are confident that growth in cement industry and related sectors like infrastructure will be higher this year. In view of revival expected this year and subsequent high demand from next year onwards, we have already increased our capacity to capitalize on increased demand from infrastructure sectors. We hope to improve our profitability and margins in FY17 on the back of higher revenues and lower input costs.”
Mr. Sanghi said the Company is well poised to serve more markets going forward as it improves sea logistics to markets like Mumbai and Kerala. “We have focused on expanding our reach in key market of Gujarat by undertaking massive promotional activities surrounding our association with the Gujarat Lions team and consumer focused initiatives like the Free Hit Scheme,” Mr. Sanghi added.
About Sanghi Industries Limited:
Sanghi Industries Limited has emerged as a major cement player in western India over the last few years. Company’s 4 million tonnes per annum capacity plant in the Abdasa taluka of Kutch district in Gujarat is ranked as one of the largest cement plants at one location in India. It is one of the top 3 players in Gujarat and is now increasing its presence in Maharashtra and Rajasthan.
Sanghi is a price and quality leader in the growing market of Western India, with a strong distribution network. Company has two sea terminals which enable it to undertake coastal distribution at a cost which is significantly lower than that of transporting cement by road or rail. Sanghi is close to the exports markets and with its own captive port it is well placed to cater to exports demand. The company has 100% captive power capacity of 63 MW, as well as a captive port which presently handles about 1 mmtpa of cargo. With a futuristic outlook, Sanghi has also established a 30 m3 per hour capacity Ready Mix Concrete (RMC) plant in Ahmedabad..