Sanghi Industries Ltd reports 276% rise in net profit

AHMEDABAD: Sanghi Industries Ltd on Thursday reported a 276% rise in net profit to Rs 26.8 cr in Q2 ending December 31, 2015 as against Rs 7.1 cr in the corresponding quarter of the last year. The company’s total income for the second quarter rose 5% to Rs 257.7 cr as against Rs 244.3 cr in the same quarter of last year, it said.

Sanghi reported EBITDA of Rs 53.1 cr compared to Rs 37.3 cr in corresponding quarter of the 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.

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.”

He said while domestic demand-supply scenario is likely to remain skewed in the favour of overcapacity for next two years, 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,” he said.