Below is the edited transcript of his interview to CNBC-TV18.
Q: Which are the regions where a price hike has been effected and to what extent?
A: Price hike started from Gujarat followed by Delhi, Mumbai and other part of Maharashtra.
Q: How much price has been hiked?
A: Price has been increased in the range of Rs 18-25 across the board in different regions.
Q: You think it will now spread to the east and south as well?
A: It will spread to east but not to south because they are still affected by the north east monsoon. There is no pickup in demand in south and it will not happen soon in south. It may take a month or so. However, it should percolate in east.
The question is whether this will be a sustained. I think the next 15 days will be crucial, which will be the test of the sustenance because there is not much pickup in demand to support the increases which are present and there is no trigger which we otherwise see normally in this season, which is shortage of wagons and pickup demand happening simultaneously. So, the next 15 days are going to be crucial to wait and watch whether the prices sustain. If they do, then we should see the cycle moving in an upward movement starting.
Q: How does the demand scenario looks like, could you elaborate on it region wise?
A: South is still lagging behind due to monsoon but there is a slight pickup in demand in the north. Demand in east is steady and has very low volumes, so it does not matter. There has been a pick up in demand in north. In winter, it went down a bit but that was an aberration. In west, especially in Maharashtra we are seeing a slight upward movement in demand. So, gradually now the demand is picking up. However, it is not jumping up so much to warrant that kind of price increase but certainly and surely it is moving upwards.
Q: What is the operating pressure looking like at this point in time. What would this price hike do to margins, do you see it improving in terms of margin improvement or do you see some amount of pressure being alleviate with regards to cost at this point?
A: The margins will improve because the cost have also been steady, though we have seen slight increases in fuel and now maybe freight is also in the offing but barring that there has not been much cost pressure so margins should improve.
Q: You are seeing this is a demand lead price hike, not so much of a cost push?
A: It is never a cost push; it is demand lead whether it is commensurate with the increase in demand proportionate is to be seen.
Q: What about capacity utilisation?
A: Capacity utilisation still lies low. We are averaging at about 73 percent across the country, much lower in the south than in the north. That will also move up as the demand picks up. In this quarter we should see a slight improvement in capacity utilisation.
Q: How is the demand supply match looking later in 2013, by the end of the year or end of the fiscal FY14. Are there more capacities coming in?
A: We are expecting about 20 odd million tonne to come in FY14. This year 14 million tonne has been added, sevwen million is in the offing and it will come before March and another 20 odd million tonne coming in the next fiscal is likely to add pressure to the prices.
Q: In the near term do you expect that there could be another price hike. You see the demand robust?
A: Yes, I see that there may not be as much as what has been increased but there will be an upward trend.
Q: After how long has this price hike come?
A: This is the first major price increase after monsoon however in the south prices has being moving in both directions.
Anda sedang membaca artikel tentang
Cement price move up, margins to improve: Ladiwala
Dengan url
https://kesehatanda.blogspot.com/2013/01/cement-price-move-up-margins-to-improve.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Cement price move up, margins to improve: Ladiwala
namun jangan lupa untuk meletakkan link
Cement price move up, margins to improve: Ladiwala
sebagai sumbernya
0 komentar:
Posting Komentar