Chemical maker GHCL Ltd. will maintain its operating margin in the coming quarters on lower commodity prices even though it expects soda ash prices to fall.
That's according to RS Jalan, managing director of the company.
“We have just recently taken a two-percent correction in prices and probably another 2-3 percent prices correction can happen in the third or fourth quarter,” he said. However, raw material prices are also falling, he pointed out.
GHCL's operating profit in the June quarter expanded to 24 percent from 20.1 percent in the year-ago period. The company also posted 19 percent growth in sales volume, a momentum it expects to maintain despite weaker demand.
“India has approximately 5 percent volume growth every year,” he said. “Even if demand drops by 2 percent, we'll be able to sustain volume growth as we have expanded last year.”
GHCL Q1 Results 2019-20: Key highlights (YoY)
- Revenue rose 17 percent to Rs 889 crore.
- Net profit up 56 percent at Rs 98 crore.
- Ebitda increased 40 percent to Rs 213.5 crore
- Margin at 24 percent versus 20.1 percent.
Watch the full conversation here:
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
