Coal news and updates

Asserting that there is no impact of demonetisation on the cement sector anymore, JK Cement chief financial officer AK Saraogi that he expects price improvement owing to a pick-up in demand. “The demand is picking up as compared to last few months. We have seen there is a pickup in demand and going forward we see that demand would be better,” Saraogi told CNBC-TV18 said on the sidelines of the Motilal Eureka Conference. Below is the verbatim transcript of AK Saraogi’s interview to Nigel D’Souza, and Sumaira Abidi on CNBC-TV18. Nigel: You have spoken to investors at conference, what is the feedback you are getting for India considering the current scenario? A: There is a lot of interest coming in for India. They are seeing how the demand will be after demonetisation and they want to know, they have a feeling what would be the impact going forward and whether we see the growth coming in faster after the demonetisation. Nigel: Specific to your company, what is the current demand situation on the ground? A: The demand is picking up as compared to last few months. We have seen there is a pickup in demand and going forward we see that demand would be better. Sumaira: A lot of these south based cement companies have announced price hikes perhaps some more in the taking, what is your take on the cement hike so far in 2017? A: There has been no major price hike of cement in this year and it will depend on the demand, and if demand picks up, then prices may improve. Sumaira: By when is that likely, do you think there might be one more quarter of pain owing to demonetisation? A: As far as cement is concerned, there is no impact of demonetisation. Nigel: Let us talk about your operational efficiencies, input costs like petcoke prices, they have gone up and in fact you have a fair bit of exposure there, will your margins come under pressure? A: No, not really, because petcoke, the prices are not likely to increase further. So, it will not put any pressure. Nigel: Where can we see a pickup geographically, now, you have exposure to South India, that is Karnataka also to North India, so, what is your sense? A: We would see the demand increasing in both North as well as in the South. Particularly we see larger growth in South where the present capacity utilisation is lower. We will see more growth in the South, but North also, growth will be there. Sumaira: Can you tell us what is the debt on your books and is there any expansion that is coming on stream? A: It is about Rs 3,000 crore consolidated. Sumaira: Any capex plans that you have going ahead? A: Except the maintenance capex, we don’t have any other plans for the time being.

 

Source: Moneycontrol