ADVERTISEMENT

Anand Rathi: Sanghi Industries’ Q1 Hit By Covid-19 Disruption, Expansion To Revive Performance

Volumes of Sanghi Industries are likely to dip 4% in FY21 and grow 39% in FY22, Anand Rathi says in a research report.

A worker carries a sack of cement under a conveyor in a warehouse in Ferozabad, Uttar Pradesh, India (Photographer Udit Kulshrestha/Bloomberg)
A worker carries a sack of cement under a conveyor in a warehouse in Ferozabad, Uttar Pradesh, India (Photographer Udit Kulshrestha/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

Hit hard by the incidence of Covid-19 cases in western region (Gujarat/Maharashtra), Sanghi Industries Ltd.’s Q1 revenue, Ebitda and profit after tax fell 46%, 43% and 84%.

Labour unavailability has postponed its Kutch expansion. With approximately 98% of the Kutch expansion completed (3.3 million tonne for clinker, 2 million tonne for cement), management expects production to commence by Q3 FY21.

The Surat grinding unit expansion continues to be deferred. The company has applied for a moratorium on loan repayment. Clinker exports are expected to be poor in the near term.

While demand in Maharashtra continues to be weak, pent-up demand and rural demand in Gujarat are expected to provide a boost.

We expect volumes to dip 4% in FY21 and grow 39% in FY22 on greater demand and the Kutch grinding unit commencing.

Click on the attachment to read the full report:

Anand Rathi Sanghi Industries Q1FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.