Sanghi Industries seeing cement demand recovery

Sanghi Industries seeing cement demand recovery

Sanghi Industries Q4FY21 volumes are up 56 percent and margins have also expanded. However, the company expects Q1FY22 sales volume to get impacted by the second wave of COVID-19.
In FY21, the sales volume as a whole was around 2.15 million tonnes, around 10% better compared to FY20. Current quarter, April and May have definitely seen the impact of COVID second wave, but are still maintaining around 40% lead over the previous months of April and May 2020.
However, with construction activity recommencing, volumes are improving in June. The company expects to deliver 40-50% year on year growth in volume in Q1FY22 and is hopeful of crossing 3 million tonne volume for FY22.
Despite an increase in raw material costs, the company expects to maintain margins at the current levels.

Disclaimer –
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.